RBI moves to stop NBFCs` deposit mop-up

While RBI Deputy Governor V Leeladhar spoke of a need to review the policy last week, the industry expects an announcement in this regard in the forthcoming monetary policy slated for April 29. D-NBFCs are expected to be given sufficient time to convert themselves into non-deposit-taking companies or banks or shift to another model.

 

Officials of various D-NBFCs said RBI had already held informal discussions and had been trying to impress upon them for at least three years now that they should reduce their dependence on public deposits. This meant whatever deposits NBFCs had already accepted so far should be repaid, said the managing director of a D-NBFC.

The impact will be felt mainly by residuary NBFCs (RNBFCs), which are finance companies that depend solely on public deposits. Three RNBFCs