Scale Based Approach News Today

A critique aspect of the current regulatory framework for non-banking financial companies by the Reserve Bank of India shows that such regulations would stymie the growth of NBFCs, constricting their lending ability that has been affected by the pandemic. What is needed is regulation through incentives instead of the threat of penalisation.

The RBI’s SBR is a Revised Regulatory Framework for NBFCs mandates a Core Banking Solution (CBS) for all NBFCs with more than 10 branches.