Rbi For Self-Regulation By Nbfcs

The Reserve Bank of India (RBI) is encouraging self-regulation among non-banking finance companies (NBFCs) so that peer pressure makes them more vigilant and accountable to small depositors, according to central bank governor Bimal Jalan.

The governor, who was speaking at a seminar organised by the Hyderabad-based Academy of Corporate Governance, said corporate governance is not the most striking feature of the NBFC sector and a self-regulatory organisation (SRO) set-up will act as a vital supporting framework to the annual inspection/ supervision carried out by the central bank.