India: decision made regarding the restricted credit improvements For NBFCs

To decrease the load on banks for financing arrangement projects, and to endorse the practice of the commercial bond market for this use, the Reserve Bank of India (RBI) allowed banks to offer partial credit enhancements (PCEs) to commercial bonds in 2015. Partial credit enhancements were aimed to increase the credit mark of bonds, thus inspiring long-term creditors for instance insurance funds and annuity funds to capitalize in such bonds.