Question
The Reserve Bank of India (RBI) has come out with a
regulatory framework to permit default loss guarantee arrangements in digital lending.According to the guidelines, the registered entities will invoke default loss guarantee within a maximum overdue period of________ , unless made good by the borrower before that.Solution
The Reserve Bank of India (RBI) has come out with a regulatory framework to permit default loss guarantee arrangements in digital lending.The RBI had barred the first loss default guarantee arrangement under the digital lending norms. Under this credit-risk sharing agreement, a certain percentage of the default loan portfolio of banks and NBFCs (registered entities) are guaranteed by a third party, a fintech or lending service provider (LSP).According to the new guidelines, the entities may enter into default loss guarantee arrangements only with a lending service provider or other entities with which it has entered into an outsourcing arrangement. Further, the LSP providing default loss guarantee must be incorporated as a company under the Companies Act, 2013. It indicates that entities can accept default loss guarantees in forms like cash deposited with the entities, fixed deposits maintained with a scheduled commercial bank with a lien (a legal claim or legal right which is made against the assets that are held as collaterals for satisfying a debt ) marked in favour of the entities and bank guarantee in favour of the registered entities.The registered entities will ensure that a default cover could be provided for up to 5 percent of the loan portfolio. In case of implicit guarantee arrangements, the Digital Lending Guidelines (DLG) provider will not bear performance risk of more than the equivalent amount of 5 percent of the underlying loan portfolio.According to the guidelines, the registered entities will invoke default loss guarantee within a maximum overdue period of 120 days, unless made good by the borrower before that.
In year 1943, Bengal famine caused the death of five million people in India. It was caused due to attack of Fungus _______________ on __________crop.
What is the range of medium range weather forecasting?
Domination of weed causes:
What is the power extracted by PTO?
For how much time period we can store food grain in rural godown?
______ is not used to reclaim acid soils.