Now Reading: RBI still assessing NBFC revolving credit norms, says Malhotra
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RBI still assessing NBFC revolving credit norms, says Malhotra
Reserve Bank of India (RBI) governor Sanjay Malhotra said on Wednesday, 7 October, that draft norms limiting non-banking finance companies (NBFCs) to term loans are under review. The Economic Times reports Malhotra stated that NBFCs were never regulatorily allowed to offer revolving credit and that past inspections had directed against the practice. Mint adds that Malhotra called the draft a clarification, not a new rule, and that the RBI has received substantial industry feedback.
The draft circular, issued on 6 August, proposed barring NBFCs from revolving credit products such as flexi-loans. Both outlets report that industry bodies have sought clarity on definitions and exemptions for MSME-focused products like supply-chain finance. Mint notes that NBFC credit grew 15.8% on-year in August and that Malhotra said no concerns on asset quality have been observed. The RBI will issue final directions after internal discussion, including at the governor's level.
Indian Opinion Analysis
Both outlets report the same core facts from Malhotra's press conference, but their framing differs. The Economic Times leads with the governor saying the RBI is still assessing the norms and has not reached a decision, emphasizing uncertainty and the systemic risk evaluation. Mint frames the draft as a clarification that NBFCs were already barred, foregrounding the regulator's established stance and the formalisation of existing directives. Mint also adds more context on industry feedback and credit growth data. The balanced reading is that while the RBI signals continuity of policy, the final shape of the norms remains open pending stakeholder consultation and internal review. The next step is the issuance of final instructions by the central bank.
Coverage: 2 sources, 2 neutral
Sources (2): economictimes.indiatimes.com (neutral report), livemint.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
