The Process Of Tightening The NBFC Will Be More Stringent

The process of tightening the NBFC will be more stringent, in the coming days, the suggestion to be divided into four classes on the basis of capital.

The process to tighten the country’s non-banking financial companies (NBFCs) since the IL&FS scandal in early 2019, will be more stringent in the coming days.

A committee constituted on behalf of RBI for framing new rules of NBFC Regulation has recommended implementing a four-level regulatory system on them.

It envisages dividing NBFCs into four categories based on their capital base, a huge increase in their capital base, and enforcing stranded debt (NPA) rules like normal banks.

It envisages the implementation of the provision for large NBFCs, just like the normal banking rules. The RBI will take a final decision on the NBFC regulation only after extensive consultation on these suggestions.

After the failure of IL&FS and some other big NBFCs thereafter, a lot of questions were being raised about their regulation.

On this, a committee was set up by RBI, whose suggestions have now been made public. There is a suggestion to divide the NBFC into four categories in the base layer, middle layer, the upper layer, and top layer.

The top-layer NBFCs have a capital base of over Rs 1,000 crore. Extremely large size NBFCs have been considered very important for the capital system of the country and in this context, it has been said to set a more strict standard for them.

By the way, it is suggested for all NBFCs to follow NPA rules like banks. That is, if a customer does not repay the loan for 90 days, then his account will have to be declared NPA.

NBFCs, considered important for the country’s system, will be identified separately and all of them will have to increase their capital base from Rs 500 crore to Rs 1,000 crore. Similarly, the required capital base for companies registered under NBFC has been increased from Rs 2 crore to Rs 20 crore.

Petrol Diesel Price: Petrol and Diesel prices increased again today, know what are the prices in your city

Petrol and diesel prices in the country have also increased on Saturday. In the national capital Delhi, the price of petrol has increased to Rs 85.70 per liter on Saturday.

At the same time, the price of diesel in Delhi has reached Rs 75.88 per liter. Earlier on Friday, petrol and diesel prices were registered.