Why has RBI again cautioned NBFCs not to cross regulatory redlines

The focus is on unsecured retail lending by shadow banks, according to experts

Just 205 words from Shaktikanta Das on non-banking financial companies (NBFCs) is all that has taken for many in the business – and the wider world of stakeholders – to take a hard look at the way they transact. The Reserve Bank of India (RBI) governor’s statement last fortnight (following the monetary policy committee meeting) may lead to banks looking at their exposures to NBFCs afresh, especially those with significant non-secured credit on their books. There have already been calls among private equity investors since and rating agencies are set to review shadow banks they rate. 
 

Mint