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The RBI released draft amendments proposing that all Securitisation Notes (SNs) be issued, held, and transferred exclusively in dematerialised (demat) form.
The RBI proposed retaining the minimum investment size of ₹1 crore, applicable at issuance and at every subsequent transfer.
Securitisation Notes are created by pooling income-generating assets (like home/vehicle/personal loans) via a Special Purpose Entity, letting banks and NBFCs raise fresh lending capital.
Public comments are due by 27 August 2026; the revised framework is proposed to take effect from 1 October 2026.
Financial instruments created by pooling income-generating assets such as home, vehicle, and personal loans. The pooled assets are transferred to a Special Purpose Entity (SPE), which issues SNs to investors; funds raised let banks and NBFCs generate fresh capital for additional lending.
Simple Analogy: Banks bundle many small loans together and sell 'shares' of the bundled repayments to investors, freeing up cash to lend again.
Banking Awareness > RBI Regulations, Securitisation
GS Paper III > Financial Markets
With reference to 'National Investment and Infrastructure Fund', which of the following statements is/are correct? 1. It is an organ of NITI Aayog. 2. It has a corpus of ₹4,00,000 crore at present. Select the correct answer using the code given below:
Answer: Neither 1 nor 2
An entity created to hold pooled assets and issue securities backed by them, isolating financial risk