# NBFCs seek RBI rethink on proposed revolving credit ban 2026-08-16T22:17:38+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet (2 source reports) India's largest non-banking finance companies (NBFCs), including Bajaj Finance, Tata Capital and Shriram Finance, are seeking a meeting with the RBI to urge it to reconsider a proposed blanket prohibition on revolving credit products. Senior representatives met on August 14 and will make a formal representation through the Finance Industry Development Council this week, sources told the Economic Times. The NBFCs warn that the restriction, proposed in the draft RBI (NBFC-Credit Facilities) Amendment Directions, 2026, could disrupt credit products worth over Rs 2 lakh crore and constrain access to finance for MSMEs and individuals. The industry argues the proposal creates regulatory arbitrage in favour of banks and that the RBI's rationale is unclear, as modified products have not drawn adverse supervisory feedback recently. However, the RBI has sought feedback from NBFCs on the draft guidelines while emphasising stronger compliance, internal audit and risk management, according to a report by NDTV Profit cited by IANS. The central bank urged NBFCs to identify risks from new products early and align frameworks with global standards, and also stressed effective consumer grievance redressal. ## Coverage - economictimes.indiatimes.com - legal.economictimes.indiatimes.com This story was synthesised by AI from the 2 sources linked above. Updated: this story now draws on 2 sources. Last updated 2026-08-17T15:10:49+00:00. Tags: Bajaj Finance, Finance Industry Development Council, NBFCs, RBI, Shriram Finance, Tata Capital Canonical: https://indianopinion.org/nbfcs-seek-rbi-rethink-on-revolving-credit-ban/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nbfcs-seek-rbi-rethink-on-revolving-credit-ban/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/