This website is only for informational purposes. Visitors are requested to note that the information is intended to be correct, complete, and up-to-date. Juris Corp does not warrant that the information contained on this website is accurate or complete, and disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.
This website is not intended to be a source of advertising or solicitation. The reader must not consider the information contained herein to be an invitation for a lawyer-client relationship, must not rely on information provided herein and must seek independent advice. Transmission, receipt or use of any information on this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act or refrain from acting, based upon any or all of the contents of this website.
Furthermore, Juris Corp does not wish to represent anyone desiring representation based solely upon viewing this web site. Finally, the reader is warned that the use of e-mail for confidential or sensitive information is susceptible to inherent risks of lack of confidentiality associated with sending e-mail over the internet.
By clicking on the "I understand and agree" button below, the user acknowledges that:
We are not liable for any consequence of any action taken by the user relying on information provided under this website. In cases where the user has any legal issues, he/she must seek independent legal advice.
The RBI updated the Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 (“updated Master Direction”), on 5th December 2022.
Key highlights of the updated Master Direction are:
1) Overseas branches of Scheduled Commercial Banks shall be permitted to:
(a) Acquire only ‘not in default’ loan exposures from a financial entity operating and regulated as a bank in the host jurisdiction.
(b) Transfer exposures ‘in default’ including ‘not in default’ pertaining to resident entities to a financial entity operating and regulated as a bank in the host jurisdiction.
(c) Transfer exposures ‘in default’ including ‘not in default’ pertaining to non-residents, to any entity regulated by a financial sector regulator in the host jurisdiction.
2) Inclusion of the definition of ‘Economic Interest’.
3) It is clarified that for calculation of MHP, the ‘registration of the underlying security interest’ is with CERSAI.
4) It is clarified that the lenders which are transferors shall not extend the working capital facilities to the borrower for at least three years from the date of such transfer.
5) The updated Master Directions now provides the valuation method of Security Receipts (“SRs”) if the investment by the transferor in SRs issued against loans transferred by it is more than 10 percent of all SRs issued against the transferred asset.
For further details, please see:
Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021
For any queries / clarifications, please feel free to ping us and we will be happy to chat:
● Mr. Ankit Sinha (email@example.com)
● Mr. Saurabh Sharma (firstname.lastname@example.org)
● Ms. Rupul Jhanjee (email@example.com)