Rating agency Icra said that Reserve Bank of India’s (RBI) plan to change disbursement norms of working capital would exert pressure on the liquidity profile of borrowers, specifically those having a high dependence on cash credit or overdraft facilities while lacking alternative sources of liquidity. As per RBI’s draft guidelines, borrowers having aggregate fund based working capital limits of Rs.150 cr. and above, a minimum level of ‘loan component’ of 40% shall be made effective from October 1, 2018; which shall thereafter increase to 60% with effect from April 1, 2019.
RBI’s capital disbursement norms to hit borrowers: Icra
Date posted: Wednesday 4 July 2018
Tags: Featured, Indian Economy