RBI plans PCA framework, different supervisory system for NBFCs by 2022

The RBI contemplates a return to an earlier supervisory rating framework for NBFCs, too, while ensuring financial statement disclosures here are on a par with banks

Focus on sustainability of agriculture, not loan waivers, says RBI

The Reserve Bank of India (RBI) is planning a prompt corrective action (PCA) framework and a different supervisory system for non-banking financial companies (NBFCs) by 2022. Its medium-term strategy, termed Utkarsh 2022, talks of a “revised and effective PCA framework for NBFCs” as part of a policy for achieving “excellence” in performance of its statutory role, among other steps. This means NBFCs will have to strictly meet benchmarks on capital requirement, non-performing assets (NPAs), and asset quality.  The RBI contemplates a return to an ...