RBI withdraws rule exceptions for NBFCs owned by govt

The decision will ensure both types of NBFCs stand on an equal footing on compliance with specific RBI rules

The Reserve Bank of India (RBI) has ended the special dispensations granted earlier for non-banking financial corporations (NBFCs) owned by the government.

Instead, it has specified a roadmap, stretching till 2021-22, for these lenders to meet the norms on capital adequacy, provisioning and corporate governance. Among the entities affected are IFCI, Power Finance Corporation, India Infrastructure Finance Company, Indian Railway Finance Corporation, Indian Renewable Energy Development Agency and Housing & Urban Development Corporation. 

“It has been decided to make the NBFC regulations applicable to government NBFCs, as per the timeline” provided in the new circular, states RBI’s notification. 

Some of the changes that