NBFCs want RBI to amend norms

MUMBAI, JAN 6: Non-banking Finance Companies (NBFCs) which have been severely crippled by the Reserve Bank of India's new guidelines have de...

MUMBAI, JAN 6: Non-banking Finance Companies (NBFCs) which have been severely crippled by the Reserve Bank of India’s new guidelines have decided to take up certain issues affecting the industry with the apex bank.

The Association of Leasing and Financial Services, Equipment Leasing Association and Federation of Hire Purchases, the representative body of leading NBFCs will meet the RBI officials on Thursday seeking amendments in the new regulatory mechanism announced by the central bank recently.

The new central bank stipulations about the NBFC sector as per the revised RBI Act, is expected to hinder the functioning of 37,000 odd NBFCs operating in different parts of the country. The NBFCs are worried about the 16 per cent cap on interest rate stipulated by RBI “We will put forth a strong representation before the Reserve Bank to make some changes in the new norms which are imperative for the survival of the industry," said Mahesh Thakkar, executive director, AL&FS. The proposed meeting will propose that the limit of funds to be raised by equipment leasing, loan and investment companies in proportion to their net owned funds should be enhanced.