Top News

Consider Giving More Powers To RBI To Regulate NBFC: Finance Minister Nirmala Sitharaman

Mumbai: In another development, Finance Minister Nirmala Sitharaman stated that government is considering strengthening the Reserve Bank’s regulatory and supervisory powers over the non-banking finance companies (NBFCs).

The union minister said that RBI is monitoring closely the liquidity situation of NBFCs and it will continue to monitor the activity and performance of the region, with a focus on key interventions with major areas.

She said that the central bank also informed that it is taking necessary regulatory and supervisory steps to strengthen NBFC and maintain the financial system stability.

Sitharaman said in a written reply, “The government has received a proposal from RBI to strengthen the regulatory and supervisory powers of the RBI under the RBI Act, 1934 and there is also a consideration.”

She further said that the Government periodically imposes capital in public sector NBFCs, which are based on the objective assessment of the requirements.

The Minister also said that during the year 2018-19, gross non-performing assets (NPA) of NBFC (depositing and systematically significant non-deposit NBFCs) increased from 5.3 per cent to 6.6 per cent in the previous financial year.

(With PTI Inputs)

Follow us on TwitterInstagram and like us on Facebook for the latest updates and interesting stories. 

Show More

Leave a Reply

Back to top button