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Banks Allowed To Lend More To Some Non-Banking Financial Companies

The limit has been raised from 10 per cent and is effective up to December 31, RBI said.The central bank on Friday increased lenders’ single borrower exposure limit for non-banking financial companies (NBFCs) which do not finance infrastructure, to 15 per cent of capital funds.

The limit has been raised from 10 per cent and is effective up to December 31, the Reserve Bank of India said in a statement.

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COMMENT

The relaxation in lending norms by RBI comes on the back of worries over tightening credit lines to NBFCs after a series of defaults at one of the country’s largest infrastructure financing companies.

Source://www.ndtv.com/business/banks-allowed-to-lend-more-to-some-non-banking-financial-companies-by-rbi-1934291

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