New rule to increase capital flows to NBFCs3 min read . Updated: 07 Feb 2019, 11:50 PM IST
- Central bank to ease risk weight norms to aid credit flow to NBFC sector, NBFC regulations
- Although bank lending to NBFCs during the first half of 2018 remained robust, the IL&FS crisis in September dried up bank lending
In a move to improve liquidity flow to non-banking financial companies (NBFCs) in the country, the Reserve Bank of India (RBI) on Thursday announced that banks assign differential risk-weights to their exposures to NBFCs, based on ratings assigned by credit rating agencies, as against the existing practice of a uniform risk weight of 100%.
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