Mumbai, Dec 9 (IANS): The Reserve Bank of India (RBI) has come up with a draft circular for declaration of dividend by NBFCs, wherein it has proposed that NBFCs should have at least 15 per cent Capital to Risk Weighted Assets Ratio (CRAR) for the last 3 years, including the accounting year for which it proposes to declare a dividend.

The RBI has sought comments on the draft circular from NBFCs, industry participants and other interested parties by December 24.

"Deposit taking Non-Banking Financial Company (NBFC-D) and Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI) should have CRAR of at least 15 per cent for last 3 years, including the accounting year for which it proposes to declare dividend," said the draft circular.

It has also suggested that NBFCs should have leverage ratio of less than seven for the last three years, including the accounting year for which it proposes to declare a dividend.

Further, it has proposed that the Core Investment Company (CIC) should have Adjusted Net Worth (ANW) of at least 30 per cent of its aggregate risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items for last 3 years, including the accounting year for which it proposes to declare dividend.

It has also said that the net NPA ratio should be less than 6 per cent in each of the last three years, including the accounting year for which it proposes to declare dividend.

The circular said that the guidelines will be applicable for dividend to be declared for the financial year beginning April 01, 2020 (FY 2020-21) onwards.