InvestorQ : Is it true that RBI has tightened regulatory norms for NBFCs?
Mary Joseph made post

Is it true that RBI has tightened regulatory norms for NBFCs?

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Arusha Ray answered.
4 weeks ago
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RBI has been trying to plug the gaps in regulation where NBFCs have an unfair advantage over banks. On these lines, the RBI has now mandated exposure limits for NBFCs, which will almost put them at par with commercial banks. NBFC exposure in upper layer will be limited to 20% of the capital base, with a leeway of just 5%.

However, RBI will still offer generous concessions for infrastructure funding. According to the RBI, these norms will be effective from 01st October 2022. The RBI has been very serious about filling the gaps in regulation between NBFCs and banks, especially after the IL&FS implosion in 2018. Real estate lending norms are likely to get tighter.

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