- The new set of rules will be applicable to all scheduled commercial banks, excluding RRBs, all-India term financial institutions, SFBs, and NBFCs.
- The RBI has specified Minimum Retention Requirement (MRR) for different asset classes under Master Direction RBI (Securitisation of Standard Assets) Directions, 2021.
- For underlying loans with an original maturity of 24 months or less, the MRR will be 5% of the book value of the loans being securitised.
- For underlying loans with an original maturity of more than 24 months as well as loans with bullet repayments, the MRR shall be 10% of the book value of the loans being securitised.
- And for residential mortgage-backed securities, the MRR for the originator will be 5% of the book value of the loans being securitised, irrespective of the original maturity.
- The minimum ticket size for the issuance of securitisation notes will be Rs 1 crore.
Question:
Q.1 As per the RBI’s new rules for Securitisation of Standard Assets, the minimum ticket size for issuance of securitisation notes will be ___?
a. Rs 1 crore
b. Rs 1.5 crore
c. Rs 50 lakhs
d. Rs 75 lakhs
a. Rs 1 crore
b. Rs 1.5 crore
c. Rs 50 lakhs
d. Rs 75 lakhs
