BANKING AFFAIRS

Detailed explanation-1: -8. Adjusted Net Worth of a CIC shall at no point of time be less than 30% of its aggregate risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items as on the date of the last audited balance sheet as at the end of the financial year.

Detailed explanation-2: -The deposits / collaterals kept by CICs-ND-SI with CCIL shall attract a risk weight of 20%.

Detailed explanation-3: -The current threshold of ₹ 100 crore asset size for registration as CIC may be retained. All CICs with public funds and asset size of ₹ 100 crore and above may continue to be registered with RBI. CICs without access to public fund need not register with the Reserve Bank.

Detailed explanation-4: -Ans: CICs having asset size of below Rs 100 crore are exempted from registration and regulation from the Reserve Bank, except if they wish to make overseas investments in the financial sector.

Detailed explanation-5: -Core Investment Company (CIC) are specialized Non-Banking Financial Companies that need to undergo NBFC registration with the RBI. These CICs, which have an asset size of ₹100 crore and above, carry on the business of acquisition of shares and securities, subject to certain conditions.