India's RBI governor says to steadily tighten NBFC regulations

India's RBI governor says to steadily tighten NBFC regulations

Photo: Reuters

The Reserve Bank of India (RBI) is looking to steadily tighten regulation of non-banking financial companies (NBFCs) without causing any disruption to the current recovery of the sector, RBI governor Shaktikanta Das said.

“NBFC regulation is not as strong as (in) banks. We are now making changes to the sector. We have mandated that there should be a chief risk officer. We have also mandated that NBFCs should have liquidity coverage ratio (LCR) requirement to take care of asset-liability (ALM) mismatches. There are a few other regulatory measures, which are under consideration and we will be bringing (them) in steadily. These new regulations have to be brought in a non-disruptive manner,” Das said in an exclusive interview to Mint on Tuesday.

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