BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As per the guidelines issued by RBI, all NBFC-MFIs should maintain an aggregate margin cap of not more than how much percent?

A	8 per cent
B	9 per cent
C	10 per cent
D	12 per cent

Explanation:

Detailed explanation-1: -What is an NBFC MFI? An NBFC MFI is a non-deposit taking NBFC with a minimum Net Owned Funds (NOF) of Rs. 5 crore (Rs. 2 crore for those registered in the North Eastern Region of the country) and having at least 85% of its net assets as “qualifying assets”.

Detailed explanation-2: -Margin cap, cap on the difference between the amount charged to the borrower and the cost of funds to the NBFC-MFI, shall not exceed 10 per cent for large MFIs (loans portfolios exceeding ₹100 crore) and 12 per cent for the others.

Detailed explanation-3: -The minimum requirement of microfinance loans for NBFC-MFIs also stands revised to 75 per cent of the total assets. 8.2 Under the earlier guidelines, an NBFC that does not qualify as an NBFC-MFI, cannot extend microfinance loans exceeding 10 per cent of its total assets.

Detailed explanation-4: -3.1 A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to ₹3, 00, 000.

There is 1 question to complete.