To encourage NBFCs to securitise/assign their eligible assets,
RBI had issued circular no. DNBR (PD)CC.No.95/03.10.001/2018-19
dated November 29, 2018, to NBFCs, relaxing the Minimum Holding
Period (MHP) requirement for originating NBFCs, in respect of loans
of original maturity above five years, to receipt of repayment of
sixmonthly instalments or two quarterly instalments (as
applicable). However, NBFCs are required to ensure that the Minimum
Retention Requirement (MRR) for such securitisation/assignment
transactions are 20% of the book value of the loans being
securitised or 20% of the cash flows from the assets being
assigned.
The above relaxations were extended till December 31, 2019
pursuant to circular no. DNBR (PD)CC.No.100/03.10.001/2018-19 dated
May 31, 2019 and on a further review, have again been further
extended till June 30, 2020 vide circular no. RBI/2019-20/131
DOR.NBFC (PD) CC.No.107/03.10.001/2019-20 dated December 31,
2019.
