RBI reduces risk weights on bank loans to NBFCs, MFIs
Trending News
3 weeks, 4 days ago

RBI reduces risk weights on bank loans to NBFCs, MFIs

Live Mint  

Amid cries of deficit liquidity in the banking system and funding crunch for several small lenders, the Reserve Bank of India on Tuesday reduced the risk weights on bank loans to non-banking finance companies and microfinance loans. The RBI’s decision to roll back its November 2023 hike in risk weights for NBFC loans has been driven by the significant slowdown in bank credit to NBFCs in FY25, tighter market liquidity, and to prioritise credit flow to the underserved segment for growth, A. M. Karthik, senior vice president, Financial Sector Ratings, Icra, said. The apex bank excluded microfinance from the list of some consumer credit segments that attract higher risk weights such as personal loans and credit cards, as announced in November 2023. Since the microfinance loans of banks will classify under the regulatory retail limit, the risk weight on these loans will also decline to 75%, thereby improving their capital ratios as well as their appetite for growth in this segment," said Anil Gupta, senior vice president, Financial Sector Ratings Icra.

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History of this topic

NBFC stocks as Aditya Birla Capital, Cholamandalam, REC rise on RBI liquidity stimulus
2 weeks, 3 days ago

NBFC stocks as Aditya Birla Capital, Cholamandalam, REC rise on RBI liquidity stimulus

Live Mint  

Stock Market Today: NBFC stocks or Non Banking Financial Services companies stocks saw significant gains on the bourses during morning trades on Thursday on news flow around RBI stimulus Aditya Birla Capital Ltd, Cholamandalam Financial Holdings Ltd, REC Ltd, Bajaj Holdings & Investment Ltd. Bajaj Finance Ltd share prices gained about 2% and above. Central Depository Services Ltd. Consolidated Finvest …

IMF cautioned of systemic risks in India’s NBFC sector due to high exposure to power and infrastructure sector
2 weeks, 5 days ago

IMF cautioned of systemic risks in India’s NBFC sector due to high exposure to power and infrastructure sector

Live Mint  

New Delhi, March 4 : The International Monetary Fund has raised concerns about potential financial instability in India due to the concentrated exposure of Non-Banking Financial Companies to the power and infrastructure sector. The report highlights that NBFCs are deeply interconnected with banks, corporate bond markets, and mutual funds, which could amplify systemic stress if vulnerabilities emerge. Concentrated lending to …

‘Banks will take cautionary stance on lending to NBFCs’
3 weeks, 2 days ago

‘Banks will take cautionary stance on lending to NBFCs’

The Hindu  

Banks will stay conservative in the short run while lending to non-banking finance companies due to fears of performance in the sector, according to Pankaj Naik, Director of India Ratings and Research. Mr. Naik further said a gradual increase in bank’s exposure to NBFCs would be concentrated on the ones with higher rating. “Just because the risk rate is now …

NBFCs gain fresh momentum as RBI eases bank lending norms
Trending News
3 weeks, 2 days ago

NBFCs gain fresh momentum as RBI eases bank lending norms

Live Mint  

The business environment is set to turn favourable for non-banking financial companies, thanks to two recent developments. A lower interest rate cycle benefits NBFCs relative to banks, as it erodes banks’ cost advantage from low-cost current and savings account deposits, allowing NBFCs to compete more effectively. Read this | Lower capital requirements for bank loans to NBFCs to ease funding …

Bajaj Finance, Shriram Finance, Cholamandalam & other NBFC stocks jump up to 6% after RBI eases risk weight norms
Top News
3 weeks, 3 days ago

Bajaj Finance, Shriram Finance, Cholamandalam & other NBFC stocks jump up to 6% after RBI eases risk weight norms

Live Mint  

Bajaj Finance, Shriram Finance, Cholamandalam Investment and other NBFC stocks jumped up to 6% in early trade on Thursday after the Reserve Bank of India lowered risk weights for bank finance to NBFCs and microfinance loans, a move that is likely to unlock more funds and boost credit. Both NBFCs and microfinance institutions have witnessed a slow down in their …

Lower capital requirements for bank loans to NBFCs to ease funding woes
3 weeks, 3 days ago

Lower capital requirements for bank loans to NBFCs to ease funding woes

Live Mint  

The Reserve Bank of India’s decision to ease rules on bank loans to non-banking financial companies has been driven by a slowdown in credit flow to these entities, which have been facing a funding crunch amid systemic liquidity deficit and rising asset quality stress in small-ticket and microfinance loans, analysts said. The central bank had in November 2023 hiked risk …

RBI eases lending rules for small borrowers and NBFCs. Here's what it means
3 weeks, 4 days ago

RBI eases lending rules for small borrowers and NBFCs. Here's what it means

India Today  

The Reserve Bank of India has eased the stricter loan rules for small borrowers and non-bank lenders at a time when the economy is showing signs of slowing down. The RBI has also put on hold its earlier proposals to increase the capital that banks must set aside for new project loans and the liquidity they need to maintain for …

RBI lowers risk weight of banks’ exposure to NBFCs
3 weeks, 4 days ago

RBI lowers risk weight of banks’ exposure to NBFCs

The Hindu  

MUMBAI The Reserve Bank of India has lowered the risk weight on the exposure of Scheduled Commercial Banks’ lending to non-banking finance companies and microfinance loans. The risk weight on the exposures was increased by 25 percentage points in 2023 in the case of NBFCs and on a review, the RBI decided to restore the risk weights applicable to such …

India’s RBI partly dials back strict loan rules for micro credit, non-bank lenders
3 weeks, 4 days ago

India’s RBI partly dials back strict loan rules for micro credit, non-bank lenders

Live Mint  

Feb 25 - The Reserve Bank of India has partially reversed tighter rules for bank loans to small borrowers and non-bank lenders, according to two separate circulars issued on Tuesday. The central bank had in 2023 increased the risk weights for banks and non-bank financial companies, or the capital that banks need to set aside for every loan, by 25 …

Delinquencies in micro loans surge three-fold
3 weeks, 4 days ago

Delinquencies in micro loans surge three-fold

Deccan Chronicle  

Chennai: Micro loan disbursements in the December quarter de-grew by 20 per cent even as the delinquencies shot up three-fold against the same last year. Similarly, banks saw delinquencies rise from 2.3 per cent to 6.8 per cent, small finance banks 2.8 per cent to 7.2 per cent, and NBFCs 1 per cent 3.7 per cent, according to MFIN. NBFC-MFIs …

Budget 2025: Govt tries to strike a balance between credit and deposits
1 month, 3 weeks ago

Budget 2025: Govt tries to strike a balance between credit and deposits

Live Mint  

The Indian banking and financial sector, though robust and well-capitalised, continues to face serious challenges linked to unsecured loans and global market volatility. However, unsecured personal loans and credit card defaults remain major stress points. Stress in retail loan continues The Reserve Bank of India's Financial Stability Report for December 2024 revealed that nearly half of personal loan and credit …

Large Indian NBFIs poised to outperform amid economic and regulatory challenges: Fitch Ratings
1 month, 3 weeks ago

Large Indian NBFIs poised to outperform amid economic and regulatory challenges: Fitch Ratings

Live Mint  

New Delhi, January 24 : India's large non-bank financial institutions are better positioned to weather economic and regulatory challenges compared to their smaller counterparts, according to Fitch Ratings. While softer economic conditions, tighter bank funding, and asset quality concerns are expected to affect the sector's credit growth and profitability in the near term, larger NBFIs with robust operations and diversified …

Lenders’ reliance on short-term funds could lead to higher rates: M. Rajeshwar Rao
2 months ago

Lenders’ reliance on short-term funds could lead to higher rates: M. Rajeshwar Rao

Live Mint  

Indian lenders’ increasing reliance on short-term funding could have repercussions if market conditions deteriorate, hurting profitability and increasing loan rates for customers, according to Reserve Bank of India deputy governor M. Rajeshwar Rao. “Less reliance on retail deposits coupled with a greater share of funding from institutional sources will likely result in increased funding costs, which can, in turn, negatively …

MFI portfolio declines, bad assets spike in Sept qtr: Report
2 months, 2 weeks ago

MFI portfolio declines, bad assets spike in Sept qtr: Report

Live Mint  

Mumbai, Jan 8 Microlending outstandings in the system reduced 4.3 per cent to ₹4.14 lakh crore in the September quarter as lenders adopted a cautious stance amid deteriorating asset quality, a report said on Wednesday. Loans unpaid for 1-30 days increased to 2.1 per cent from the 1.2 per cent in June, while the ones unpaid for 31-180 days witnessed …

NBFC loan growth to decline in FY26 to 18.5% YoY: Ind-Ra
Trending News
2 months, 2 weeks ago

NBFC loan growth to decline in FY26 to 18.5% YoY: Ind-Ra

The Hindu  

India Ratings and Research which has maintained a neutral sector outlook and a Stable rating Outlook for non-bank finance companies for FY26 has projected that the loan growth of NBFCs would further decline in FY26 to 18.5% YoY. According to the rating agency the NBFCs after witnessing a phase of high reliance on the unsecured loan segment for achieving loan …

Share of stressed MFI assets, borrower indebtedness rises in H1: RBI report
2 months, 3 weeks ago

Share of stressed MFI assets, borrower indebtedness rises in H1: RBI report

Live Mint  

Mumbai: The share of stressed loans has risen in the microfinance portfolios of Indian lenders across ticket sizes, adding to concerns about the sector. In the first half of FY25, impairment among borrowers who had availed loans from multiple lenders and those with higher credit exposure remained high, reflecting the rise in borrower indebtedness, the report said. In the quarter …

RBI warns against spillover of unsecured loan stress
2 months, 3 weeks ago

RBI warns against spillover of unsecured loan stress

Live Mint  

Mumbai: Nearly a year after clamping down on exuberance in unsecured loans, India’s central bank has expressed concern about the stress in such loans spilling over to larger, secured loans. “Nearly half of the borrowers availing credit card and personal loans have another live retail loan outstanding, which are often high-ticket loans,” the Reserve Bank of India said in its …

What RBI has in store for banks and NBFCs: New regulation, lens on unsecured loans
2 months, 3 weeks ago

What RBI has in store for banks and NBFCs: New regulation, lens on unsecured loans

Live Mint  

India's banks and non-bank lenders are set to witness a slew of regulatory and supervisory changes in the year ahead, as the central bank pushes ahead with its recent measures to strengthen the banking system. The Reserve Bank of India will consider removing prepayment penalties on floating rate term loans to small businesses; examine inter-linkages between private credit firms, banks …

Indian banks’ balance sheets stay robust, bad loans decline more, central bank report says
2 months, 3 weeks ago

Indian banks’ balance sheets stay robust, bad loans decline more, central bank report says

Live Mint  

By Siddhi Nayak MUMBAI, Dec 26 - Indian banks' financial position has stayed robust, marked by the sustained expansion in loans and deposits, while their gross bad loan ratio has dropped to multi-year lows, a central bank report showed on Thursday. Net bad loans of banks fell to 0.57% of total loans at September-end, from 0.62% at end-March, driven by …

NBFCs turn to other avenues as bank credit slows on repeated RBI warnings
3 months, 1 week ago

NBFCs turn to other avenues as bank credit slows on repeated RBI warnings

Live Mint  

India’s non-bank financiers have heeded calls from the Reserve Bank of India to diversify their borrowing profile and are now gradually moving towards more market borrowings and other avenues such as overseas borrowing and securitization or asset sales instead of relying solely upon bank loans. Top NBFCs have seen the share of bank credit in their total debt fall significantly …

Microfinance meltdown: Five stocks that could come out on top
4 months ago

Microfinance meltdown: Five stocks that could come out on top

Live Mint  

The microfinance sector is facing a severe downturn, with every small finance bank and non-banking finance company involved in microlending seeing declines of 30-50%. Equitas Small Finance Bank estimates that around 50% of loans overdue by 90 days eventually become NPAs, though this figure varies across lenders. Equitas Small Finance Bank, Ujjivan Small Finance Bank, CreditAccess Grameen Ltd, and Arman …

Rising Defaults Among Retail Borrowers are Stressing India’s Top Banks
4 months, 1 week ago

Rising Defaults Among Retail Borrowers are Stressing India’s Top Banks

The Quint  

Given that India’s economic growth relies heavily on domestic consumption, any slowdown in lending could ripple through the broader economy, impacting sectors dependent on consumer spending. Moreover, as banks shift their focus from retail to secured loans to mitigate risks, small and medium enterprises could face reduced access to capital, hindering job creation and slowing down economic expansion. In October, …

Microfinance risk: Small loans can spell big trouble for Indian banks
4 months, 1 week ago

Microfinance risk: Small loans can spell big trouble for Indian banks

Live Mint  

Once bitten twice shy" goes the old adage. Driven perhaps by the lack of credit demand from corporates, a boom in retail credit, an eagerness to bridge the last- mile gap in credit delivery and pressure to achieve priority-sector lending targets, banks seem to have lowered their guard and gone overboard in extending such loans. To its credit, the Reserve …

MFI Risks Rise with Overleveraging in Bihar, UP
6 months, 3 weeks ago

MFI Risks Rise with Overleveraging in Bihar, UP

Deccan Chronicle  

Chennai: Increasing borrower leverage, especially in states like Bihar and Uttar Pradesh, is a key concern for the micro-finance segment. For MFI borrowers, the check on household leverage becomes paramount, as improved availability of loans from MFI players, government loans, Kisan Credit Card loans, mudra loans, gold loans, and other fintech loans could overleverage the end MFI borrower, impacting repayment …

NBFCs Face Funding Strains, Slower Growth Ahead
7 months ago

NBFCs Face Funding Strains, Slower Growth Ahead

Deccan Chronicle  

Mumbai: Non-banking financial companies are likely to face funding challenges that could result in slower growth compared to the robust expansion seen in the last two fiscals according to rating agency ICRA Ltd. “The banking sector, a key lender to the NBFC segment, is expected to register an overall credit expansion of around 12 per cent in FY2025, resulting in …

Bank lending to NBFCs jump 26% to Rs 15.6 trillion
8 months, 1 week ago

Bank lending to NBFCs jump 26% to Rs 15.6 trillion

New Indian Express  

MUMBAI: Despite the Reserve Bank of India massively hiking the risk capital weighting on banks’ exposure to non-banks last November, the same has been rising unabated clipping at 26 per cent in May 2024, to go past Rs 15.6 trillion. In May 2024, mutual funds debt exposure to NBFCs rose to 13.3 per cent of banks advances to NBFCs, which …

India assessing need for more measures to slow unsecured lending, cenbank chief says
9 months, 2 weeks ago

India assessing need for more measures to slow unsecured lending, cenbank chief says

Hindustan Times  

MUMBAI - India's central bank is assessing whether further measures would be needed to slow down the growth in banks' lending towards unsecured loans and non-banking finance companies, Governor Shaktikanta Das said on Friday. India assessing need for more measures to slow unsecured lending, cenbank chief says The Reserve Bank of India, has warned lenders against "all forms of exuberance" …

NBFC lenders find borrowing a costly affair
11 months, 1 week ago

NBFC lenders find borrowing a costly affair

Live Mint  

MUMBAI : Non-bank lenders are struggling through a spike in borrowing costs as banks have become cautious in lending to them following a regulatory warning, forcing these companies to diversify their money sources. The Reserve Bank of India in November increased the risk weights on NBFCs by 25 percentage points, making their cost of borrowing from banks costlier by 30-50 …

More fintech NBFCs tap debt markets for expansion
1 year, 2 months ago

More fintech NBFCs tap debt markets for expansion

Live Mint  

MUMBAI : Fintech startups operating as non-banking financial companies are increasingly turning to the bond market to secure funds for expansions due to the rising costs of bank borrowing. JM Financial reported that Fintech NBFCs raised ₹1,818 crore from the bond market in 2023, up from just ₹450 crore in 2022. “With demand for credit picking up, bank credit getting …

RBI deputy governor urges banks to be prudent on lending to NBFCs
1 year, 2 months ago

RBI deputy governor urges banks to be prudent on lending to NBFCs

Live Mint  

Mumbai: Banks need to reconsider whether they want to be part of lending consortiums to non-bank financiers that have scores of other lenders – up to 40 at times – to improve their monitoring of borrowers' use of sanctioned loans, RBI deputy governor Swaminathan J said. The deputy RBI governor was responding to a question from SBI managing director Ashwini …

Here's why NBFCs will have to look beyond banks for funds
1 year, 2 months ago

Here's why NBFCs will have to look beyond banks for funds

Live Mint  

Mumbai: Non-bank lenders that borrow heavily from commercial banks to lend further may need to diversify their funding sources in the year ahead, given the rising competition for bank credit, and higher risk weights on loans to these lenders, experts said. “The idea is to improve funding access to productive sectors, but the regulations can lead to customers paying more …

How RBI’s new regulations on consumer credit will affect fintech lenders
1 year, 3 months ago

How RBI’s new regulations on consumer credit will affect fintech lenders

Live Mint  

The Reserve Bank of India has tightened norms for consumer credit as it asked banks and NBFCs to assign a higher risk weight for unsecured personal loans. The move comes within a month of RBI Governor Shaktikanta Das flagging concerns over the high growth seen in the consumer credit segment. In the circular, the RBI said, "It has been decided …

What is RBI’s latest move to increase risk weight for lending about? | Explained
1 year, 3 months ago

What is RBI’s latest move to increase risk weight for lending about? | Explained

The Hindu  

The story so far: Seeking to rein in an observed rise in unsecured personal loans and credit cards, the Reserve Bank of India directed banks and non-banking financial companies to reserve more capital for risk weights. While presenting the monetary policy statement in October this year, Governor Shaktikanta Das had flagged concerns about the “high growth” in “certain components of …

Govt explores steps to boost affordable NBFC loans
1 year, 4 months ago

Govt explores steps to boost affordable NBFC loans

Live Mint  

The Centre is exploring options such as increasing the deposit acceptance limit for eligible non-banking finance companies, introducing deposit insurance and creating a specific liquidity window for NBFCs, according to two officials. The goal is to lower funding costs, enabling NBFCs to offer loans to crucial sectors such as agriculture and micro, small, and medium enterprises, at more affordable interest …

A ritualistic risk dance begins as the political stakes start to rise
1 year, 4 months ago

A ritualistic risk dance begins as the political stakes start to rise

Live Mint  

There are no prizes for guessing when it’s election time in India; the high-decibel festive atmosphere accompanying pre-election campaigning makes sure that polls never go unnoticed. RBI’s rear-guard action is aimed at minimizing risk from burgeoning unsecured personal loans advanced by both banks and non-banking financial companies. Interestingly, the higher risk weightage applies only to general purpose consumer credit and …

RBI Stricter Norms For Consumer Credit Unsecured Personal Loans To Hit Banks' Capital Adequacy By 60 Basis Points S&P Global Ratings Credit Card NBFC
1 year, 4 months ago

RBI Stricter Norms For Consumer Credit Unsecured Personal Loans To Hit Banks' Capital Adequacy By 60 Basis Points S&P Global Ratings Credit Card NBFC

ABP News  

The Reserve Bank of India’s decision to enforce stricter rules for consumer credit by increasing risk weight for unsecured personal loans is expected to affect banks’ capital adequacy by 60 basis points, S&P Global Ratings said on Friday. The banking regulator on Thursday assigned increased risk weights on unsecured personal loans, credit cards, and lending to nonbank finance companies by …

RBI tightens norms for personal loans and credit cards, raises capital requirements
1 year, 4 months ago

RBI tightens norms for personal loans and credit cards, raises capital requirements

Live Mint  

The Reserve Bank of India on Thursday tightened norms for personal loans and credit cards in the form of higher capital requirements. The new norms will make personal loans and credit cards costlier and may curb growth in these categories. The central bank has raised the risk weights for lenders and non-bank financial companies, or the capital that banks need …

NBFCs relying more on bank loans: RBI
1 year, 6 months ago

NBFCs relying more on bank loans: RBI

Live Mint  

Mumbai: Domestic non-banking financial companies, especially those in the upper-layer category, are increasingly relying on bank borrowings as their primary source of funding, according to an analysis in Reserve Bank of India ’s September bulletin. “During the assessment period, NBFCs’ reliance on banks increased steadily due to low interest environment and lag monetary policy transmission," the article said. Direct bank …

Boom in risky loans may spur curbs on unsecured lending
1 year, 8 months ago

Boom in risky loans may spur curbs on unsecured lending

Live Mint  

MUMBAI : The Reserve Bank of India is likely to raise risk weights on unsecured loans by 10-25 percentage points to caution banks against unfettered lending under this category, bankers and analysts said. While risk weights are likely to increase, leading to more capital consumption, RBI will not raise it equally for all categories of unsecured loans, they said. View …

RBI lifts loan costs to tame inflation
2 years, 1 month ago

RBI lifts loan costs to tame inflation

The Hindu  

The Monetary Policy Committee of the Reserve Bank of India on Wednesday raised the benchmark lending rate by 25 basis points to 6.5% as the RBI targets persistently high core or underlying inflation that it sees as a risk to the improving outlook for the economy. Observing that the rate increases since May were still working their way through the …

SEBI alerts RBI about NBFCs evergreening loans
2 years, 3 months ago

SEBI alerts RBI about NBFCs evergreening loans

Live Mint  

The Securities and Exchange Board of India has informed the Reserve Bank of India about instances of non-bank lenders evergreening loans by using alternative investment funds, two people with direct knowledge of the matter said. “Sebi, during the course of its examination, found at least two NBFCs and two AIFs indulging in the practice of ‘evergreening’ through the AIF route. …

RBI names 16 leading NBFCs in its upper layer list
2 years, 5 months ago

RBI names 16 leading NBFCs in its upper layer list

Live Mint  

The Reserve Bank of India on Friday released a list of 16 upper layer non-banking finance companies that must adhere to enhanced regulation. The 16 companies in the NBFC-UL list are: LIC Housing Finance, Bajaj Finance, Mahindra & Mahindra Financial Services, Shriram Transport, Tata Sons, L&T Finance, Indiabulls Housing Finance, Piramal Capital & Housing Finance, Cholamandalam Investment and Finance Co., …

Microfinance lenders should not charge usurious rates of interest, RBI says in revised norms for the sector
3 years ago

Microfinance lenders should not charge usurious rates of interest, RBI says in revised norms for the sector

The Hindu  

The Reserve Bank of India on Monday allowed microfinance institutions the freedom to set interest rates they charge borrowers, with a caveat that the rates should not be usurious. As per the revised norms, regulated entities should put in place a board-approved policy regarding pricing of microfinance loans, a ceiling on interest rate and all other charges applicable to microfinance …

RBI announces scale-based regulatory framework for NBFCs
3 years, 5 months ago

RBI announces scale-based regulatory framework for NBFCs

Live Mint  

The Reserve Bank of India has introduced a revised scale-based regulatory framework for non-banking financial companies, which will be effective from 1 October, 2022. The scale-based framework encompasses different facets of regulation of NBFCs covering capital requirements, governance standards, prudential regulation, and others. NBFCs in the lowest layer will be known as NBFC - Base Layer, while those in the …

RBI Alert: Reserve Bank of India changes rules for loan transfer; issues master direction for banks, NBFCs
3 years, 5 months ago

RBI Alert: Reserve Bank of India changes rules for loan transfer; issues master direction for banks, NBFCs

India TV News  

The Reserve Bank on Friday issued Master Direction on loan transfer, requiring banks and other lending institutions to have a comprehensive board-approved policy for such transactions. The Master Direction has also prescribed a minimum holding period for different categories of loans after which they shall become eligible for transfer. As per the direction, "a loan transfer should result in immediate …

India’s risk-based internal audit requirement for NBFCs is credit positive: Moody’s
4 years, 1 month ago

India’s risk-based internal audit requirement for NBFCs is credit positive: Moody’s

Live Mint  

The Reserve Bank of India guidelines for non-banking finance companies to implement a risk-based internal audit framework in line with banks is credit positive, Moody's Investors Service said on Monday. "The requirement is credit positive because it adds another layer of risk monitoring and improves the companies' resilience to unexpected shocks," said Moody's in its latest credit outlook. Moody's said …

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P
4 years, 3 months ago

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P

The Hindu  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11% of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is “masking” problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the proportion of …

NBFCs have an edge in banking licence race
4 years, 4 months ago

NBFCs have an edge in banking licence race

Live Mint  

Large non-bank lenders stand to gain the most from the Reserve Bank of India panel’s proposal to allow large companies and shadow lenders into banking services, experts said. More importantly, it would allow RBI to increase regulatory oversight over some of the large shadow lenders, particularly after the collapse of Infrastructure Leasing & Financial Services Ltd and Dewan Housing Finance …

NBFCs with Substantial Systemic Risks Must Be Subjected to Higher Degree of Regulation: RBI DG
4 years, 4 months ago

NBFCs with Substantial Systemic Risks Must Be Subjected to Higher Degree of Regulation: RBI DG

News 18  

Asserting the need to recalibrate regulations for shadow banking sector, Reserve Bank Deputy Governor M Rajeshwar Rao on Friday said NBFCs with significant externalities and which contribute substantially to systemic risks must be identified and subjected to a higher degree of regulation. "One can also argue that the design of prudential regulatory framework for such NBFCs can be comparable with …

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