NBFCs Seek RBI Reconsideration on Revolving Credit Restrictions
· Business · Economic Times, Zee News
Leading Indian non-banking finance companies, including Bajaj Finance, Tata Capital, and Shriram Finance, are seeking a meeting with the Reserve Bank of India to discuss proposed curbs on revolving credit products. Representatives met on August 14 to formalize their concerns, which will be submitted through the Finance Industry Development Council this week. The industry argues that a blanket prohibition could disrupt credit products with an aggregate assets under management exceeding Rs 2 lakh crore. These lenders maintain that the affected products currently serve MSMEs and individuals without showing signs of adverse credit behavior or high costs. The RBI has not yet provided a specific regulatory rationale for the proposed ban.
Why it matters
The proposed restriction could significantly limit credit access for MSMEs and individual borrowers while impacting the business models of major non-bank lenders across the country.
Read the original report — Economic Times
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