RBI Governor Shaktikanta Das
said market mechanism should be given preference to solve the crisis in non-banking financial companies (NBFCs).
It means the existing promoters should go for a stake sale, bring in new promoters or new money into their NBFCs. This is something that the promoters are already doing, but banks have a role, too. “The resolution process has to be market-based and in this, the banks and other lenders have a major role to play because in NBFCs where there are major governance issues, the banks need to take a larger haircut," governor Das said, adding, “the banks will have to take a very balanced call.”