- RBI proposal: Securitisation notes will be issued and held only in dematerialised form.
- Minimum investment: ₹1 crore for both fresh investment and secondary-market transfer.
- To improve transparency, ownership records, transfer tracking and regulatory supervision.
- Securitisation notes are instruments backed by pooled loans such as home, vehicle or business loans.
- Investor return: Payments come from the principal and interest collected on the underlying loans.
- Risk: Defaults by borrowers may cause delayed payments or losses to investors.
Question
Q1.What minimum investment limit has the RBI proposed for securitisation notes?a) ₹10 lakh
b) ₹25 lakh
c) ₹50 lakh
d) ₹1 crore
Answer: d) The RBI has retained the minimum investment limit of ₹1 crore to keep participation mainly limited to informed and financially capable investors.
