RBI Working to clear up NBFC issues

The Reserve Bank of India (RBI) has formed a working group to look into the various issues related to the Non Banking Finance Companies (NBFCs).

The Reserve Bank of India (RBI) has formed a working group to look into the various issues related to the Non Banking Finance Companies (NBFCs).

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"We have formed a working group that is headed by Usha Thorat, former deputy governor, RBI which will look into various issues and problems faced by NBFC," said Shyamala Gopinath, deputy governor, RBI while addressing the seminar organised by Indian Merchants' Chambers on issues and challenges faced by NBFC sector. The working group also includes members of NBFC sector.

NBFCs have been demanding liberal guidelines from the regulator in the light of their entry into the banking sectors. The central bank recently made capital adequacy ratio to be 15% for deposit taking NBFCs.

On the issue of core investment companies (CICs) she said the recent guideline were released after consulting all the stakeholders of CICs. CICs are non-banking finance companies (NBFCs) which invest in shares for the purpose of owning a stake in a company, rather than for trading. They also do not carry out any other financial activities.