UES 18. When a company’s rating is downgraded, does it have to bring down its level of public deposits immediately or over a period of time?
ANS 18. If rating of a NBFC is downgraded to below minimum investment grade rating, it has to stop accepting public deposit, report the position within fifteen working days to the RBI and reduce within three years from the date of such downgrading of credit rating, the amount of excess public deposit to nil or to the appropriate extent permissible under paragraph 4(4) of Non-Banking Financial Companies Acceptance of Public Deposits ( Reserve Bank) Directions, 1998; however such NBFC can renew the matured public deposits subject to repayment stipulations specified above and compliance with other conditions for acceptance of deposits.
Related Questions
- UES 18. When a companys rating is downgraded, does it have to bring down its level of public deposits immediately or over a period of time?
- UES 18. When a company’s rating is downgraded, does it have to bring down its level of public deposits immediately or over a period of time?
- When a company’s rating is downgraded, does it have to bring down its level of public deposits immediately or over a period of time?
