CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India has today communicated that the applicable average base rate to be charged by Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning January 1, 2022 will be 7.89 per cent.

Detailed explanation-2: -As announced in the Monetary Policy Statement 2022-23 dated September 30, 2022, the Bank Rate is revised upwards by 50 basis points from 5.65 per cent to 6.15 per cent with immediate effect. 3.

Detailed explanation-3: -Infrastructure Finance Company (IFC): IFC is a non-banking finance company a) which deploys at least 75 per cent of its total assets in infrastructure loans, b) has a minimum Net Owned Funds of Rs 300 crore, c) has a minimum credit rating of ‘A ‘or equivalent d) and a CRAR of 15%.

Detailed explanation-4: -8.1 Under the earlier qualifying assets criteria 1, a Non-banking Financial Company -Microfinance Institution (NBFC-MFI) is required to have minimum 85 per cent of its net assets 2 as ‘qualifying assets’.

Detailed explanation-5: -Rate of Interest: 23.25% to 24.50% per annum on a reducing balance method governed by the Marginal Cost of Funds based Lending Rate MCLR-based pricing policy of the bank. Processing Fee: 1 - 2% of the loan amount (excluding applicable GST)