New Delhi: The Reserve Bank of India (RBI) will beef-up vigil on non-banking financial companies (NBFC) and would not hesitate to step in with more measures if needed, Governor Shaktikanta Das said on Saturday.
Speaking at the 15th convocation of the National Institute of Bank Management (NIBM), Pune, 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 was a case for having a fresh look at their regulation and supervision.
Noteworthy, major NBFCs are facing an acute liquidity crunch after the IL&FS group defaulted last year. They 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.
“It is our endeavour to have an optimal level of regulation and supervision so that the NBFC sector is financially resilient and robust,” he added.
He said the 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.
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