RBI to allow banks to lend more to NBFCs that don't finance infrastructure

This comes at a time when the liquidity crunch at NBFCs has compounded worries for the market as investors fear the situation may tighten

To help stem liquidity crisis, the Reserve Bank of India on Friday increased lenders' single borrower exposure limit for non-banking financial companies (NBFCs) which do not finance infrastructure, to 15 per cent of capital funds. The limit has been raised from 10 per cent and is effective up till December 31, the Reserve Bank of India said in a notification. 

Government securities held by them up to an amount equal to their incremental outstanding credit to NBFCs and HFCs, over and above the amount of credit to NBFCs and HFCs outstanding on their books as on October 19, 2018, as