Government Considering More Powers To RBI To Regulate NBFCs, Says Nirmala Sitharaman
The government is considering strengthening the Reserve Bank of India's regulatory and supervisory powers over the non-banking finance companies, Finance Minister Nirmala Sitharaman said in the Lok Sabha on Monday.
Replying to a question, Sitharaman said RBI was closely monitoring liquidity position of the NBFCs and will continue to monitor the activity and performance of the sector with a focus on major entities and their interlinkages with other sectors.
"The government has received a proposal from the RBI to strengthen RBI's regulatory and supervisory powers under the Reserve Bank of India Act, 1934, and the same is under consideration," Sitharaman said in a written reply,
According to the finance minister, the government from time to time infuses capital in public sector NBFCs on an objective assessment of requirements. However, there is no proposal under consideration for private NBFCs’ recapitalisation.
As on June 23, 9,643 NBFCs were registered with the Reserve Bank of India.