Budget 2019: India gives Reserve Bank more power to regulate NBFCs

The decision follows concerns that a broader financial crisis may emerge as firms like Dewan Housing Finance Corp. and Anil Ambani's Reliance Capital Ltd. struggle to find fresh funding

India announced measures to strengthen oversight of the country’s shadow banks and improve their access to funding by providing guarantees for purchases of their assets.
 
The Reserve Bank of India will now be the regulator of housing finance firms, replacing the National Housing Bank, Finance Minister Nirmala Sitharaman said during her budget speech on Friday.
 
The government will also provide a one-time partial credit guarantee for loan losses to state banks that buy as much as 1 trillion rupees ($14.6 billion) of high-rated pooled assets of non-banking finance companies, Sitharaman said.
 
The decision follows concerns that a