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    Question

    Which of the followings type of NBFCs is not registered

    with RBI?
    A Asset Finance Company Correct Answer Incorrect Answer
    B Investment Company Correct Answer Incorrect Answer
    C Loan Company Correct Answer Incorrect Answer
    D Infrastructure Finance Company Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Reserve Bank of India decided to allow banks to lend to NBFCs for on-lending to priority sectors on an on-going basis to ensure continuation of the synergies that have been developed between banks and NBFCs in delivering credit to the specified priority sectors. The same holds true for small finance banks who are on-lending to NBFC-MFIs. This facility was earlier allowed till March 31, 2022. Bank credit to NBFCs, including housing finance companies (HFCs), for on-lending to priority sectors will be allowed upto an overall limit of 5% of an individual banks total priority sector lending. Small finance banks for on-lending to NBFC-MFIs and other MFIs, which are RBI recognised, will be allowed up to an overall limit of 10% of an individual bank’s total priority sector lending. Small finance banks will be allowed to lend to registered NBFC-MFIs and other MFIs who have a gross loan portfolio of upto Rs 500 crore as of March 31 of the previous financial year.

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