RBI still reviewing revolving credit norms for NBFCs
In short
RBI Governor Sanjay Malhotra said the central bank is still reviewing rules for revolving credit at non-banking finance companies. Draft norms had suggested limiting NBFCs to term loans without revolving credit options.
This matters because it could change how NBFCs lend and manage risk. The RBI has not made a final decision yet, so the outcome is still unknown.
What the reporting says
RBI Governor Sanjay Malhotra said regulations on revolving credit by non-banking finance companies are still under review, after draft norms were issued limiting NBFCs to term loans without revolving credit options. He said systemic risks linked to the proposed changes will be thoroughly evaluated before a decision is made. The immediate consequence is continued uncertainty for NBFC lending models, but no final rule has been announced.
Why it matters
RBI Governor Sanjay Malhotra said rules on revolving credit for non-banking finance companies are still being reviewed after draft norms proposed limiting NBFCs to term loans without revolving credit options. The issue matters to NBFCs, borrowers and lenders because it could alter lending products and risk management. The reporting says systemic risks will be evaluated, but it does not state when a final decision will come.