CURRENT AFFAIRS

Detailed explanation-1: -Harsh Vardhan, Senior Advisor, Bain & Co. as the Chairperson. The Committee was set up in recognition of the role of well-functioning securitisation markets for better management of credit and liquidity risks in the balance-sheets of banks as well as non-bank mortgage originators.

Detailed explanation-2: -Deepak Parekh, Chairman, Housing Development Finance Corporation Ltd (HDFC) As Chairman of HDFC, India’s largest mortgage lender, Mr.

Detailed explanation-3: -It is to be noted that NHB supervises HFCs while regulation of HFCs is with RBI.

Detailed explanation-4: -The Reserve Bank of India (RBI) formulated guidelines in 2006 (which were modified in 2012) for governing securitisation of standard assets (Securitisation Guidelines). Standard assets (or performing assets) under Indian law, would generally be assets where amounts due have not been outstanding for more than 90 days.

Detailed explanation-5: -The Reserve Bank regulates financial markets within the overarching statutory framework of the Reserve Bank of India Act, 1934, the Government Securities Act, 2006, Foreign Exchange Management Act, 1999, the Bilateral Netting of Qualified Financial Contracts Act, 2020 and the Payment and Settlement Systems Act, 2007.