The Reserve Bank of India (RBI) is looking to steadily tighten regulation of non-banking financial companies (NBFCs) without causing any disruption to the current recovery of the sector, RBI governor Shaktikanta Das said.
“NBFC regulation is not as strong as (in) banks. We are now making changes to the sector. We have mandated that there should be a chief risk officer. We have also mandated that NBFCs should have liquidity coverage ratio (LCR) requirement to take care of asset-liability (ALM) mismatches. There are a few other regulatory measures, which are under consideration and we will be bringing (them) in steadily. These new regulations have to be brought in a non-disruptive manner,” Das said in an exclusive interview to Mint on Tuesday.
You might also be interested to read: Electric Vehicle Market In India Projected To Grow 36% Annually Till 2026!
He said there are signs that bank credit to NBFCs is slowly reviving and the better-performing ones are able to access funds from the market at rates that prevailed before the collapse of Infrastructure Leasing and Financial Services (IL&FS).