RBI to keep vigil on NBFCs performance |
Reserve Bank of India has been keeping a close vigil on non-banking financial companies (NBFC) and would not hesitate to step in with more measures if needed. Speaking at a function, RBI Governor Shaktikanta Das said the conventional approach to the regulation and supervision of NBFCs had been `light-touch` so that they could complement banks, but in the light of recent developments, there is a case for having a fresh look at their regulation and supervision. RBI would continue to monitor the activity and performance of NBFCs with a focus on major entities and their inter-linkages with other sectors, and would not hesitate to take any step to maintain financial stability. Major NBFCs are facing a liquidity crunch after the IL&FS group defaulted last year. These corporations are selling their non-core assets, and securitising retail assets to banks in order to raise funds as markets are not giving them money anymore and loans from banks are becoming sparse.
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