The Reserve Bank of India (RBI) allowed banks to provide partial credit enhancement (PCE) to bonds issued by systemically important non-deposit taking non-banking financial companies (NBFCs) registered with the RBI and housing finance companies (HFCs) registered with the National Housing Bank.
The move is aimed at enhancing the credit rating of the bonds and enabling these NBFCs to access funds from the bond market on better terms. PCE, which was introduced in 2015, will help NBFCs and HFCs raise money from insurance and provident or pension funds who invest only in highly-rated instruments.
Source- The Livemint
Static/Current Takeaways Important For IBPS PO Mains Exam 2018:
- Urjit Patel- 24th Governor of RBI, Headquarters- Mumbai, Established on- 1st April 1935, in Kolkata.