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RBI Requires NBFCs to Ensure Minimum 25% Borrowings from Capital Market.

Banking & Finance | Dated: 07 Nov 2024

The Reserve Bank of India (RBI) has mandated that Non-Banking Financial Companies (NBFCs) must ensure at least 25% of their borrowings come from capital market instruments. This step is part of RBI's ongoing efforts to strengthen financial stability and improve risk management within the NBFC sector.

🎯 Key Highlights:

  • - The remaining gold reserves include 324.01 metric tonnes held in safe custody at international institutions like the Bank of England and the Bank for International Settlements (BIS).
  • - In addition, the RBI holds 20.26 metric tonnes of gold in the form of deposits to bolster liquidity and financial stability.
  • - Gold now constitutes 9.32% of India's total foreign exchange reserves, up from 8.15% at the end of March 2024.

💡 Other Important Facts:

  • (i) RBI's Digital Payments Index (RBI-DPI) rose to 445.5 by the end of March 2024, showing a 12.6% Year-on-Year (Y-o-Y) increase compared to March 2023. It was 418.77 in September 2023 and 395.57 in March 2023.
  • (ii) RBI has published its 'Report on Currency and Finance (RCF) for 2023'.

📚 Test Your Knowledge:

Recently, what percentage of borrowings does the RBI require NBFCs to ensure from the capital market?

Correct Answer: 25%

🚀 Quick Recap:

About RBI

  • CEO : Shaktikanta Das
  • Headquarter : Mumbai