On 8th June 2020, the Reserve Bank of India ("RBI") had released Draft Frameworks for Sale of Loan Exposures and Securitisation of Standard Assets.
Basis the comments received from various stakeholders, the RBI has now, vide notification dated 24th September 2021 introduced: (a) Master Direction – Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021; and (b) Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 (collectively the "New Directions"). The New Directions come into immediate effect replacing the existing instructions on the subject-matter.
We are analysing the New Directions and will issue a detailed note on the same in due course.
85MDSTANDARDASSETSBE149B86CD3A4B368A5D24471DAD2300.PDF (rbi.org.in)
86MDLOANEXPOSURESC6B1DFB428C349D885619396317F04DE.PDF (rbi.org.in)
Originally published 24 September, 2021
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