NBFCs show fresh interest in on-tap licences, initiate talks with RBI

Pressure on NBFC sector to have stable funding base a major reason

Fresh interest for on-tap banking licences is building up from non-banking financial companies (NBFCs), a fallout of the ongoing crisis in the sector. A few leading NBFCs are in talks with the central bank on regulatory issues surrounding on-tap licences, the terms of which were spelt out in August 2016. 

Senior officials from three NBFCs confirmed they have begun discussions with the Reserve Bank of India (RBI), but did not want to go on record.

On-tap licences did away with the earlier process of issuing banking licences in fits and starts, but the process is in no way lenient. As on date,