Proposed changes to NBFC Regs

Pursuant to the Usha Thorat Committee report, the RBI has proposed wide-ranging amendments to the NBFC regulations. In order to adopt a consultative approach, the RBI has placed on its website, the draft guidelines to address issues and concerns in the NBFC sector. 

The draft revised guidelines relate to entry point norms, principal business criteria, prudential regulations, liquidity requirements for NBFCs and corporate governance. While accepting some of the suggestions, the RBI has proposed additional time to bring the new regulatory framework into existence. My colleague, Mr. Jayant Thakur has commented on the proposed changes elsewhere.