Amid the resurgence of Covid-19 and with states imposing lockdowns, non-banking financial companies (NBFCs) are seeking a revival of the debt restructuring scheme. Those who had availed themselves of the recast earlier should get a second chance, the Finance Industry Development Council (FIDC) said in a letter to the Reserve Bank of India (RBI).
In the letter, addressed to RBI Governor Shaktikanta Das, the industry lobby group said, “Considering the severe second wave of Covid-19, the retail borrowers, including the [micro, small and medium enterprises], as also the retail and wholesale trader industry shall be in urgent need of support from the lenders, to revive their economic activities.”
The Finance Industry Development Council (FIDC), an industry body representing last-mile lenders, wrote to the central bank governor as rising caseloads have triggered localised lockdowns, denting the ability of the less privileged borrowers to repay.
Implement norms for statutory auditors in next fiscal, FIDC to RBI
By IANS |
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Reserve Bank of India (RBI). (File Photo: IANS). Image Source: IANS News
Mumbai, April 28 : The Finance Industry Development Council (FIDC) has urged the Reserve Bank of India (RBI) to implement the new norms regarding appointment of statutory auditors by banks and NBFCs in the next financial year.
The guidelines for appointment of Statutory Central Auditors and Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including Housing Finance Companies) which were released on Tuesday would become applicable from the current financial year (2021-22).
In a letter to RBI Governor Shaktikanta Das, the FIDC said: The circular should be made applicable from April 01, 2022 i.e. FY 23 onwards for a smooth transition. Most of the NBFCs have already finalised the auditors for FY 22 and the flexibility of changing auditors in the second half of FY 22 doesn t really help
COVID-19: Second wave will have minor impact on NBFCs; pent-up demand to help attain normalcy
Even if there is some delay of a month or two (in repayment), it will not sustain as the pent-up demand will take care of the business and collections. So, I don t see a big risk for NPAs, Umesh Revankar said
PTI | April 28, 2021 | Updated 21:51 IST
Revankar said a restructuring option by the Reserve Bank of India (RBI) for stressed accounts can help NBFCs rework customers loan repayment
Though the disruption in economic activities due to the second wave of COVID-19 may impact non-banking financial companies (NBFCs), the sector will attain normalcy soon, helped by the pent-up demand, say industry players. Amid rising coronavirus cases in the country, some of the states, including Maharashtra, Karnataka have put strict restrictions on movements.
FIDC asks RBI to put off norms on auditor appointment by NBFCs to next fiscal
April 29, 2021
× Finance Industry Development Council has requested the Reserve Bank of India to push back the guidelines for appointment of statutory auditors of banks and non-banking finance companies to April 1, 2022 or fiscal year 2022-23.
To give NBFCs time to comply with the new norms, and “For smooth implementation and minimum disruption, the applicability of the circular can be with effect from April 1, 2022,” FIDC said in a representation to the RBI Governor Shaktikanta Das.
FIDC is a representative body of assets and loan financing NBFCs.
“Most of the NBFCs have already finalised the auditors for 2021-22 and the flexibility of changing auditors in the second half of 2021-22 doesn’t really help as shareholder approval would be required and the notice of the AGM would have already been finalised,” FIDC said.