RBI rejects liquidity window for NBFCs; govt demurs citing cash crunch

The government has pitched to the RBI for alignment of PCA provisions

The Reserve Bank of India (RBI) has ruled out a special refinancing window for non-banking financial companies (NBFCs) as the regulator feels that there is no systemic risk as of now.

“There is not a strong enough case for a special financing window right now. The regulator does not want to make an across-the-board intervention. Only about 200 of the over 11,000 NBFCs in the country are deposit-taking, so there is no systemic issue,” a person aware of the development said.

The RBI board meeting held on Tuesday discussed the liquidity scenario of NBFCs along with the government’s request to