No system-wide problem with NBFCs

Mumbai: After acting against two non-banking financial companies (NBFCs) following concerns on their business practices, RBI Governor Shaktikanta Das said there is no "system-wide" problem with such lenders.

Addressing the customary post-policy press conference, Das said it is not fair to perceive the actions "which came on consecutive days last month" as a "spate" of regulatory interventions. "As a part of the supervision, we take regular review of all players, particularly the major players. I don't want to say that this is a system-wide problem because we have supervised all the players.

The action is only in outlier cases," Das said. Earlier, he also said the country's financial sector is "stable". He said if the RBI officials find some deviation or non-compliance during the supervision process, the first attempt is for sensitisation of the entity's management on a bilateral level to take the corrective action.