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Informist, Wednesday, Oct. 7, 2026

 

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--RBI Malhotra: Credit growth to stay strong
--RBI Malhotra: See credit growth strong going forward 
--RBI Malhotra: Credit growth to stay strong, aid growth 
--RBI Malhotra: NBFC credit growth is quite robust 
--RBI Malhotra: Don't see any issues, concerns on NBFCs' asset quality 
--RBI Malhotra: Draft norms on NBFCs revolving credit for clarity 
--RBI Malhotra: Have only clarified NBFCs cannot give revolving credit 
--RBI Malhotra: Revolving credit norms are not a new rule 

 

NEW DELHI – Credit growth will continue to remain strong and support economic growth, Reserve Bank of India Governor Sanjay Malhotra told the post-policy press conference Wednesday. "A few percentage points here and there should not really matter too much in the overall scheme of things but... it will be strong and continue to support growth," he said. The governor said credit growth has been at an all-time high, as mentioned at the previous post-policy press conference as well.

 

On non-banking financial companies, Malhotra said their growth rate has also been robust with bank credit to non-bank lenders growing at about 37% and the companies' own credit growth also being strong, though it is lower than the credit growth recorded by banks. Loans disbursed by non-banking financial companies rose 15.8% on year to INR 60.64 trillion in August, according to data released by the Reserve Bank of India Tuesday. Loans to agriculture and allied activities rose 17.4% on year to INR 801.09 billion in August, up from 5.1% a year ago.

 

"NBFC credit to the real economy is lower than that of the banks," Malhotra said. "We do not see any issues or concerns relating to asset quality with regard to NBFCs." The central bank remains alert to risks building up, not only from an asset quality perspective but also from demand and price pressures as noted by the Monetary Policy Committee, he said. "We are conscious of such risks but we do not see any such risks getting built as of now," Malhotra said.

 

On the revolving credit norms for non-banking financial companies, the RBI governor said the draft rule that the central bank had published was a clarification. It is not a new rule or law because non-banking financial companies are not permitted to offer revolving credit. "This is a clarification that individual NBFCs were given the guidance and directions through RBI's supervision," he said. "Now, since technical development has taken place by using software technology, revolving credit is being given in the form of term loan. So, to put it in the rules, we have published its draft."

 

On whether the RBI will come out with fresh guidelines on revolving credit, he said the banking regulator has received several comments on the draft and is examining them, following which it will issue a fresh draft. "Right now, its examination is going on... we have not fully discussed it at my level," Malhotra said. "The department has examined it, studied it and discussed it. All DGs (deputy governors), governors will sit together and we will take a joint decision. You will come to know about it."

 

In its August policy, the RBI had issued draft directions for credit facilities of non-banking financial companies, under which it proposed that they be allowed to offer only term loans and not revolving credit products. However, it had also said these restrictions 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 that 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

 

Reported by Vaishali Tyagi

Edited by Rajeev Pai

 

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