Non Banking Financial Companies(NBFCs)

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Ratings of NBFCs

RBI /2008-09 /372

DNBS (PD) CC. No.134/03.10.001 / 2008-2009
February 04, 2009
All Non-Banking Financial Companies (NBFCs) with assets size of Rs 100 crore and above excluding Residuary Non-Banking Companies (RNBCs).

Dear Sirs,

Ratings of NBFCs

As per the instructions issued vide Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998, in the event of downgrading / upgrading of the credit rating of an NBFC to any level from the level previously held by the NBFC, it shall, within fifteen working days of its being so rated inform, in writing, of such upgrading / downgrading to RBI.

2.   NBFCs also issue financial products like Commercial Paper, Debentures etc. to which rating is assigned by rating agencies. The ratings assigned to such products may undergo changes for various reasons ascribed to by the rating agencies.

3.     It has therefore been decided that all NBFCs (both deposit taking and non-deposit taking) with asset size of Rs 100 crore and above shall furnish the information about downgrading / upgrading of assigned rating of any financial product issued by them, within fifteen days of such a change in rating, to the Regional Office of the Bank under whose jurisdiction their registered office is functioning.

Yours faithfully

(P Krishnamurthy)
Chief General Manager-In-Charge