Funding for NBFCs should accompany RBI's liquidity management rules: FIDC

RBI intends to prescribe stringent rules for liquidity risk management as many NBFCs were hit by a severe asset liability mismatch

The non-banking finance companies, most of whom are cash strapped, want the Reserve Bank of India (RBI) to implement liquidity risk management rules only in tandem with an arrangement for making available much needed funds. Else, RBI should defer the roll out of risk management rules until liquidity situation become normal.  

“The proposed guidelines should be made concomitant with provision of a mechanism of liquidity support for NBFCs. Currently, with the tight liquidity conditions in the industry have made generation of funds a very difficult task. We request the RBI to kindly consider putting in place a suitable mechanism