The Reserve Bank of India (RBI) Monday issued the revised Regulatory Framework for Non-banking Finance Companies (NBFCs), with a view to streamlining the regulations for the sector, an official statement said.
Explaining the rationale behind the revised framework, the central bank said: "A lighter regulatory framework has been placed on NBFCs other than for those with large asset sizes and deposit accepting. For NBFCs with large asset sizes, and for all deposit accepting NBFCs, regulations have been harmonised across NBFCs, and to some extent, with banks.
"The intent is to create a level playing field that does not unduly favour or disfavour any institution."
The RBI also revoked, with immediate effect, its temporary suspension on issuance of certificate of registration (CoR) to companies proposing to conduct business of non-banking financial institution (NBFI), the statement added.
It further stated that in limited areas where harmonisation has resulted in strengthening the regulations, generally adequate time has been given to manage the transition. The regulator will then focus on the most important and systemic risks.
