Top NBFCs seek a glide path for switch to banking avatar

In a five-page letter addressed to the chief general manager in charge of regulations at Mint Road, non-bank lenders have also suggested allowing a 3-4 year transitory period before bringing down NPA recognition norms to 90 days from the present 180 days.

Synopsis

Non-bank have also argued that NBFCs in the upper level be given greater flexibility on issues like deposit acceptance, raising of funds through the ECB route and setting up of overseas subsidiaries.

Mumbai: Non-bank finance companies (NBFC) have suggested that the central bank lay down a transition path for top-tier shadow lenders wishing to convert into high-street banks as they are largely prepared for such a conversion. In a five-page letter addressed to the chief general manager in charge of regulations at Mint Road, non-bank lenders have also suggested allowing a 3-4 year transitory period before bringing down NPA recognition norms to

BY

ET Bureau

3 mins read, Last Updated: Feb 15, 2021, 06:52 AM ISTGIFT ARTICLEFONT SIZE

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