RBI reviews NBFCs revolving credit guidelines, Sanjay Malhotra cites technology
Business
The RBI is taking a fresh look at how non-banking financial companies (NBFCs) offer revolving credit: think flexible borrowing.
Governor Sanjay Malhotra explained that technological advances have blurred the lines between term loans and revolving credit, so the RBI wants to clear things up with new guidelines.
Over ₹2T loans could be affected
If these changes go through, over 2 trillion rupees in loans, especially those helping small businesses and everyday borrowers, could be affected.
The RBI says they're listening closely to feedback before making any final calls.
For now, NBFCs are seeing strong growth, and there aren't any big worries about loan quality.