The Reserve Bank of India (RBI), which released its discussion paper for non-banking financial companies (NBFCs), has proposed a four-layer regulatory framework structure. Further, the RBI has proposed that the entry point for NBFCs be hiked to Rs 20 crore from the current Rs 2 crore.

Santanu Chakrabarti of Edelweiss Financial Services and Gagan Banga, Managing Director of Indiabulls Housing Finance spoke to CNBC-TV18 on the topic.

“I do not see – whatever I have read so far – to be in the least disruptive. As a matter of fact, what I have been saying for a long time, I would like to repeat it again this kind of a formalisation of guidelines and this perceived arbitrage getting reduced between banks and non-banks is hugely progressive for non-banks,” said Banga.

“This seems to be a very progressive discussion paper, it would set the base for NBFCs to become even more relevant than what they are in the system today,” Banga mentioned.

NS Vishwanathan, Former Deputy Governor of RBI also shared his views on the proposed framework.

For full discussion, watch the video...

(Edited by : Bivekananda Biswas)

First Published:Jan 22, 2021 5:16 PM IST