Interest rate ceiling for NBFCs loan at 12%; caps are much lower than the normal interest rates charged by these lenders
In the absence of clarity, NBFCs are staring at huge repayment obligations at a time when their liquidity cover is declining
Most banks are yet to decide on giving moratorium to shadow lenders
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Evidence of heightened risk aversion suggests a supply-shock has choked credit offtake
While the NBFC sector continues to face the heat, corporate banks seem to be on track to recovery
Banks have to set aside capital for loan exposures
In FY19, NBFCs had a 30% share in outstanding retail loans, while public sector lenders had a 39% share and private banks had 26%
RBI rejected suggestions given by RTI activist on operations of NBFCs, like to ban calls luring customers for unsecured loans, capping interest rates and putting a ban on financing of NBFCs by banks
NBFCs have increased their market share in credit to business from 2 per cent in 2015-16 to 2.8 per cent in 2016-17, said a RBI study