Members of industry association Assocham met RBI governor Shaktikanta Das on Friday and proposed liquidity relief measures for non-banking financial companies (NBFCs) and housing finance companies (HFCs). The delegation requested the governor to reduce the minimum holding period to three months for loans having maturity of two-five years. In November 2018, the RBI allowed NBFCs to securitise loans of more than five-year maturity after holding them for six months on their books which earlier had to be held for a year. The delegation also requested the RBI governor that housing finance companies should be allowed to access the refinance facility of National Housing Finance. It further said the sectoral cap on mutual funds investing in NBFCs be enhanced to 35 per cent and an additional 15 per cent in the case of housing finance companies.
Source: The Telegraph January 12, 2019 18:22 UTC