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Informist, Thursday, Sept. 3, 2026

 

--NBFC source: RBI listening to us on revolving credit norms 

--NBFC source: Confident revolving credit new norms to be NBFC friendly 

 

By Kabir Sharma

 

 

MUMBAI – Non-banking finance companies are confident that the Reserve Bank of India will take industry concern into account while finalising norms governing revolving credit facilities, a senior official with a large-sized NBFC said. "They are quite positive, they are listening to us. So we are very confident," the official said when asked whether the central bank was receptive to the points raised by NBFCs on the proposed rules. 

 

The RBI is currently seeking stakeholder feedback on its draft guidelines. The official said the consultation process was intended to gather industry views before the proposals were finalised. "Why the draft guidelines are given, to take the public view. So they are taking the public view, they'll absorb it, then it will become a regulation," the official said.

 

The official, however, stopped short of commenting on whether the final rules would be changed or about quantifying the potential impact on NBFCs. The industry is assessing the impact, with some numbers already emerging, the official said. 

 

The RBI in its August policy issued draft directions for credit facilities of non-banking financial companies, under which it proposed that NBFCs be only allowed to offer term loans and not revolving credit products. However, it added that these restriction would not apply to non-banking financial companies authorised by the central bank to issue credit cards. 

 

Revolving credit refers to any fund based credit facility, which does not meet the definition of a term loan. The RBI also proposed to remove demand or call loans from the ambit of the credit policy of non-banking finanacial companies.  End

 

Edited by Akul Nishant Akhoury

 

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