By Saikat Das
Non-banking finance companies that accept deposits will now have to maintain a capital adequacy ratio (CAR) of 15%, up from 12% currently, the Reserve Bank of India (RBI) notified on Thursday. This means for these NBFCs to give Rs 100 as loans, they should have a capital base (equity + debt) of Rs 15. For NBFCs that do not accept deposits, the capital adequacy ratio is currently 15%. "It has been decided to align the minimum capital ratio of all deposit taking as well as systemically important non-deposit taking NBFCs to 15%. Accordingly, all deposit taking NBFCs shall maintain a minimum capital ratio consisting of Tier I and Tier II capital, which shall not be less than 15% of its aggregate risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items with effect from March 31, 2012,Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
