Sinlung /
23 January 2021

RBI puts out a proposal to tighten 'Fixed Deposits' by NBFCs

  • Currently NBFCs are categorized as deposit taking and non-deposit taking

  • Within the second category there are systematically important entities

  • New suggestions would have four layers - base layer would be for non deposit taking

  • Deposit taking NBFCs would have a new superstructure for regulation - this structure has not been fully specified, but is expected to be closer to that of the banks

  • In effect, entities taking deposits from customers would have similar regulations on Tier 1 capital, reserves, etc.

  • This would greatly help the folks who stick to 'Fixed Deposits'



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