RBI Governor Shaktikanta Das meets NBFCs on liquidity crisis, assures help

The NBFCs suggested that the RBI should reduce the minimum holding period to 3 months for loans having maturity of 2-5 years

RBI governor Shaktikanta Das met representatives from non-banking financial companies (NBFCs) and housing finance companies to discuss the liquidity crisis in the sector and assured them of addressing genuine concerns.  

A delegation of Associated Chambers of Commerce and Industry of India (Assocham) requested him to allow more leeway in fundraising by NBFCs. According to NBFCs, over-regulation is hampering the growth of the sector. 

The delegation said NBFCs have a unique model of lending and that has to be recognised by the regulator, instead of over-regulating the sector. They suggested that the RBI should reduce the minimum holding period to 3 months for