RBI forms new NBFCs' category by merging 3 to ease operational flexibility

The decision was taken by the RBI in its last bi-monthly monetary policy

The Reserve Bank of India (RBI) has merged three categories of NBFCs — asset finance, loan companies and investment companies — into one new category called NBFC-investment and credit company (NBFC-ICC) to ease operational flexibility of these institutions.
 
In its endeavor to replace entity-based regulations with activity-based ones, the RBI in its last bi-monthly monetary policy had decided to harmonise major categories of non-banking financial companies (NBFCs) engaged in credit intermediation into a single category.
 
Also, the central bank has capped the investment limit of deposit-taking NBFC–ICC in any other company to 20 per cent of its owned