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RBI moots scale-based tighter regulatory framework for NBFCs - Daily Current Affairs 2021
RBI moots scale-based tighter regulatory framework for NBFCs

Why is it in news?
  • RBI has suggested a tougher regulatory framework for the non-banking finance.
Details:
  • RBI's suggestion is aimed at preventing recurrence of any systemic risk to the country’s financial system.
  • RBI released a discussion paper on the revised regulatory framework which is formulated on a scale-based approach.
  • As per the proposals, the extant NPA classification norm of 180 days will be reduced to 90 days.
NBFCs:
  • A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances.
  • However, NBFC cannot accept demand deposits.
Posted by Jawwad Kazi on 23rd Jan 2021
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