Issue of Guidelines for Appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including Housing Finance Companies)
Reserve Bank of India

Draft circular on declaration of dividend by NBFCs issued by RBI

Reserve Bank of India has issued draft circular on declaration of dividend by non-banking financial companies (NBFCs). Accordingly, deposit-taking NBFCs and systemically important non-deposit-taking NBFCs must have their net non-performing assets  below six percent and a capital adequacy ratio of at least 15 percent for the last three years, including the accounting year for which it proposes to declare dividend. RBI has added that non-systemically important, non-deposit-taking NBFCs should have a leverage ratio of less than seven while core investment company – CIC should have Adjusted Net Worth (ANW) of at least 30 percent of its aggregate risk-weighted assets on balance sheet. The apex bank has invited public comments on the draft circular, which need to be submitted by 24th December.


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Surbhi Saxena edits the daily Current Affairs News.
The author is qualified member of The Institute of Company Secretaries of India (ICSI).