PMC Bank's now-suspended managing director has reportedly confessed that the bank's loan exposures went unreported for over six years.
Mutual funds should value money market and debt securities using the waterfall approach on the basis of traded yields, SEBI said in a circular.
The RBI has ordered the troubled cooperative bank to cap withdrawals at 1,000 rupees per account, prompting panic, protests and promises of legal action from customers.
A three-year deadline to publicly list is approaching for small finance banks that were granted in-principle licences by the RBI in September 2015.
From 1 April 2020, liquid and overnight funds must hold at least 20% of their net assets in liquid assets such as cash, government securities and treasury bills.
Financial institutions in India are known to be giving fintech firms and institutional agents direct access to data from credit bureaus, without customer consent.
The paper proposes that payment gateways and payment aggregators be required to have a minimum net-worth of 1 billion rupees, among other requirements.
The move aligns bank exposure limits for NBFCs with limits applicable for other types of counterparties, but Fitch says it is unlikely to lead to significant credit flows to the sector.
The move will reduce the amount of capital banks need to set aside as provisioning for consumer loans, effectively reducing the cost of lending.
Transitory accounts at bank branches are being used to provide unauthorised overdrafts to avoid default classification on loans, and to mask unexplained cash deposits.