RBI may issue securitisation rules for NBFCs, direct sales

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The proposed rules for asset securitisation released by the central bank this week do not apply to finance companies and the Reserve Bank of India is likely to come up with a separate set of rules for them, a source directly involved in the matter told Reuters.

The RBI on Monday had released the draft paper on securtisation of loans where it had suggested that banks be asked to hold on to loans for at least nine months before creating a securitised asset with them.

"These are only applicable to scheduled commercial banks," the source told Reuters.

The rules also do not apply to loans that banks sell directly without securitisation and the central bank is working on a separate set of rules for such loans.

"There will be a separate set of guidelines for direct assignments," or loans sold directly, he added.

However, he refused to comment whether these will be similar in terms of minimum holding period norm.

The source clarified the rules as there was some confusion among bankers about whether the proposals apply to NBFCs and direct loan sales.