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Banking | Reserve Bank’s liquidity support for NBFCs

Banking | Reserve Bank’s liquidity support for NBFCs
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First Published: Wed, Feb 18 2009. 09 55 PM IST
Updated: Wed, Feb 18 2009. 09 55 PM IST
Mumbai: The Reserve Bank of India (RBI) on Wednesday announced liquidity support to some important non-deposit taking non-banking finance companies (NBFCs) through a special purpose vehicle, or SPV.
“The scheme has been finalized and Industrial Development Bank of India Stressed Asset Stabilization Fund (IDBI SASF) Trust has been notified as Special Purpose Vehicle (SPV) for undertaking this operation,” RBI said on Wednesday.
Under this arrangement, the central bank will purchase securities worth Rs20,000 crore issued by the SPV.
“The SPV will purchase the short-term paper from the issuing NBFCs directly. The short-term instruments will be commercial papers and non-convertible debentures, with residual maturity (of) not more than 90 days and rated as investment grade,” RBI said. The facility would not be available for any paper issued after 31 March, it added.
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RBI issues guidelines for safe online transactions
Mumbai: The Reserve Bank of India (RBI) on Wednesday said commercial banks have to set up additional security systems for validating all online credit card transactions from 1 August.
RBI said it would issue detailed guidelines later.
The regulator has also directed banks to issue online alerts to cardholders for all “card not present” transactions that are worth more than Rs5,000.
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First Published: Wed, Feb 18 2009. 09 55 PM IST
More Topics: RBI | NBFC | Banks | Online Transaction | India |