New central bank norms may attract more investments into India's non-bank lenders

The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai, India, February 2, 2016. REUTERS/Danish Siddiqui/File Photo

The Reserve Bank of India’s (RBI) proposed guidelines for non-bank lenders are not as stringent as feared and are expected to improve the funding conditions of the sector and provide more confidence to potential investors, experts said.

Last week, RBI proposed stricter regulation for non-banking financial companies (NBFCs) and proposed classifying them into four categories based on their size and risk perception. The proposed regulations would vary according to the size of the NBFC, RBI said.

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