Action against M&M Financial Services won't affect other NBFCs: RBI

Experts had pointed out that in light of these directions against one entity, recovery activities of NBFC sector could get impacted as a majority of NBFCs rely on outsourced agents for loan recovery

The Reserve Bank of India (RBI) on Friday said the action taken against Mahindra & Mahindra Financial Services (MMFSL) will not have an impact on other non-banking finance companies (NBFCs) as the action taken was against a specific entity.
 

Last week, the regulator directed MMFSL not to outsource recovery activity after a 22-year-old pregnant woman died in Jharkhand’s Hazaribagh while trying to block loan recovery agents from taking away her father’s tractor. She was crushed under the vehicle. The loan was taken from MMFSL.
 

“We don’t see any impact on other NBFCs because this specific restriction was related to one