The Reserve Bank of India’s (“RBI”) Master Direction – Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025 dated November 28, 2025, as updated from time to time (“Directions”) provides that the Board of Directors of Non-Banking Financial Companies (“NBFCs”) granting/intending to grant demand/call loans shall frame a policy in this regard and implement it. Accordingly, the Board of Directors of Respo Financial Capital Private Limited (the “Company”) has approved and implemented this policy of demand & call loans (“Policy”).
Presently, the Company (being an NBFC) is not granting/intending to grant any demand/call loans. However, keeping in view the future activities of this nature and in view of the regulatory requirement, the Company has framed and adopted the following policy on extending demand/call loans:
- The Company will grant demand and/or call loans to the entities having a good track record, financial soundness and/or good rating.
- Demand/Call loans would be considered by the Company under unsecured loan segment.
- The maximum period for a demand/call loan will be 12 months from the date of disbursement of such loan (i.e., the period within which the demand/call loan shall be demanded or called up – termed as the stipulated period or cut-off date). For each case, such ’stipulated period’ shall be decided and specified in the sanction memorandum/advice.
- All demand/call loans advanced by the Company shall be reviewed for performance of the loan no more than 6 months after they are sanctioned by the Company. Such demand/call loans shall not be renewed unless the periodical review has shown satisfactory compliance with the terms of sanction.
- A log of the cut-off dates of each of the demand/call loans shall be maintained by the Company.
- In case no demand/call is made prior to the expiry of the stipulated period, then the loan shall be deemed to be called/demanded on such expiry date and shall be repaid accordingly.
- A suitable clause empowering such demands/calls to be made for repayment will be incorporated in the loan agreement.
- The mode and authority of making the demand or call for repayment of the loan would be as decided, documented, and adhered to by the parties.
- Demand/call loans may be considered on fixed interest, or a floating interest rate basis pegged to any anchor rate as may be agreed upon. The interest rate would be decided on a case-to-case basis considering the prevailing market rate and interest rate policy of the Company and such interest shall be payable on a monthly or quarterly basis, as stipulated by the Company at the time of sanctioning the demand/call loan.
- The sanctioning authority shall record specific reasons in writing at the time of sanctioning a demand or call loan, if no interest is stipulated or a moratorium is granted for any period or if the cut-off date for demanding or calling up such loan is stipulated beyond a period of one year from the date of sanction.
- The Company may monitor the end use of funds borrowed by the borrower.
- Either side would give 3 working days’ notice to the other side for intended repayment /demand/call for repayment. During this three-day period, no additional interest / penal interest would accrue.
- At least 15 days prior to the end of the stipulated period, the loans would be reviewed to decide on whether the demand/call should be made on the due date or further renewal of the loan either in full or partially is to be considered for any period not exceeding 12 months and the aforesaid shall be documented. In case the loan is renewed, then it should be considered as a new demand/call loan although it may continue under the same customer / loan account number. However, necessary renewal papers would be obtained.
- In case the interest is not serviced on the due date, or the loan is not paid off after being called up / demanded, then the loan would be treated as non-performing, if such overdue status continues for more than 90 days from such date. The necessary provisioning will be in accordance with the RBI guidelines.
- The maximum amount for each of the demand/call loans and the aggregate amount of the demand/call loans would be subjected to a periodic review, at least on half-yearly basis, by the Board.
- This Policy shall be reviewed at least annually by the Board and may be amended, modified or revised from time to time in accordance with applicable laws, regulatory requirements and business needs. Any amendment, clarification, circular or direction issued by the RBI, or any other applicable regulatory authority shall automatically apply to this Policy and prevail in case of any inconsistency, until the Policy is accordingly updated.