...........“Off-balance sheet exposures of NBFCs have increased with the increased participation in currency options and futures and interest rate futures. It is therefore necessary that NBFCs move over to modern techniques of risk measurement to strengthen their capital framework,” RBI said in a notification. The decision is expected to improve solvency of the NBFCs though it might put additional financial burden on them. NBFCs will have to assign adequate weights to both on and off-balance sheet items while maintaining the mandatory CRAR (Capital to Risk Asset Ratio).............
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