Pricing of credit by NBFC-MFIs- applicable average base rate

Updated List of Average of Base rates of 5 largest commercial banks – as notified by RBI on the last day of the last working day of the previous quarter, which determines interest rates for the ensuing quarter:

Quarter beginning with	Quarter, FY	Avg. of base rates of 5 largest commercial banks (%)	Link	Avg. of base rates X 2.75 (%)
Circular dated Feb, 7 , 2014			Click here
Quarter beginning July 1, 2014	Q2, 2014-15	10.09	Click here	27.75
Quarter beginning Oct 1, 2014	Q3, 2014-15	10.09	Click here	27.75
Quarter beginning Jan 1, 2015	Q4, 2014-15	10.09	Click here	27.75
Quarter beginning April 1, 2015	Q1, 2015-16	10.09	Click here	27.75
Quarter beginning July 1, 2015	Q2, 2015-16	9.89	Click here	27.2
Quarter beginning Oct1, 2015	Q3, 2015-16	9.82	Click here	27.01
Quarter beginning Jan 1, 2016	Q4, 2015-16	9.45	Click here	25.99
Quarter beginning Apr 1, 2016	Q1, 2016-17	9.44	Click here	25.96
Quarter beginning July 1, 2016	Q2, 2016-17	9.44	Click here	25.96
Quarter beginning Oct 1, 2016	Q3, 2016-17	9.44	Click here	25.96
Quarter beginning Jan 1, 2017	Q4, 2016-17	9.41	Click here	25.88
Quarter beginning Apr 1, 2017	Q1, 2017-18	9.35	Click here	25.71
Quarter beginning July 1, 2017	Q2, 2017-18	9.22	Click here	25.35

Cheers!

Eligible Credit Rating Agencies

Eligible Credit Rating Agencies- Rating of Fixed Deposits

Reserve Bank of India (RBI) vide Circular No. RBI/2017-18/45 DNBR (PD).CC.No.89/03.10.001/2017-18 dated 14-August-2017 allowed rating agency -  "Infomerics Valuation and Rating Private Limited (IVRPL)" to rate the fixed deposit portfolio of NBFCs  [All Deposit Taking NBFCs (except Residuary Non-Banking Companies)] with IVR BBB as the minimum investment grade credit rating. Now, NBFCs can also use the ratings of Infomerics Valuation and Rating Private Limited (IVRPL).

Approved Credit Rating Agencies and Minimum Investment Grade Credit Rating

(As per para 9 of the Master Direction DNBR. PD.002/03.10.119/2016-17 dated August 25, 2016 on Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions)

Name of the agency	Minimum Investment Grade Credit Rating
(a) The Credit Rating Information Services of India Ltd. (CRISIL)	FA- (FA Minus)
(b) ICRA Ltd.	MA- (MA Minus)
(c) Credit Analysis & Research Ltd. (CARE)	CARE BBB (FD)
(d) Fitch Ratings India Private Ltd.	tA-(ind)(FD)
(e) Brickwork Ratings India Pvt. Ltd. (Brickwork)	BWR FBBB
(f) SME Rating Agency of India Ltd.(SMERA)	SMERA A
(g) Infomerics Valuation and Rating Private Limited (IVRPL)	IVR BBB

Cheers!

RBI - FAQs on Priority Sector Lending / Bank Credit to Micro Finance Institutions (MFIs) - Priority Sector Lending

RBI issued FAQs on Priority Sector Lending - Targets and Classification on July 24, 2017 (Link). 

Bank Credit to Micro Finance Institutions (MFIs) - Priority Sector Lending

1. RBI clarified vide FAQ Point No. 10 that Bank Credit to MFIs (NBFC-MFIs, Societies, Trust etc.) extended for on-lending to Individuals and also to members of SHGs / JLGs is eligible for categorisation as priority sector advance under respective categories viz., Agriculture, Micro, Small and Medium Enterprises, Social Infrastructure and Others subject to the criteria laid down in para IX of the Master Circular FIDD.CO.Plan.BC.04/04.09.01/2015-16 dated July 1, 2015 on Priority Sector Lending- Targets and Classification. 

2. RBI further vide FAQ Point No. 5 clarifies that Bank credit to Micro Finance Institutions (MFI) extended for on-lending to individuals/ members of SHGs/ JLGs for water and sanitation facilities is also eligible for classification as priority sector loans under ‘Social Infrastructure’ subject to certain criteria.

Please refer the latest instructions on Priority Sector Lending –Targets and Classification have been issued vide RBI Circular FIDD.CO.Plan.BC.04/04.09.01/2015-16 dated July 1, 2015 (amended up to December 15, 2015). [FAQ Point No. 14]