Govt mulling more powers to RBI for regulating NBFCs: Sitharaman

The government is considering strengthening the Reserve Bank’s regulatory and supervisory powers over the non-banking finance companies (NBFCs), Finance Minister Nirmala Sitharaman said in the Lok Sabha on July 1.

Replying to a question, the minister said RBI was closelymonitoring the liquidity position of NBFCs and will continue to monitor theactivity and performance of the sector with a focus on major entities and theirinterlinkages with other sectors.

   

The central bank, she added, has also informed that with aview to strengthen the NBFCs and maintain stability of the financial system, ithas been taking necessary regulatory and supervisory steps.

“Government has received a proposal from RBI tostrengthen RBI’s regulatory and supervisory powers under the Reserve Bank ofIndia Act, 1934, and the same is under consideration,” Sitharaman said ina written reply.She further said that the government, from timeto time, infuses capital in public sector NBFCs based on an objectiveassessment of requirements.

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