The Reserve Bank of India has released its annual report making it clear that it is worried about the severe slump in growth. The report suggests various methods to boost the economy including ways to strengthen the non-banking financial companies. RBI has promised more transparency and harmonisation and bolstering the surveillance mechanism.
There are 6-7 key points that RBI has highlighted as steps to strengthen the NBFCs in this financial year starting with continuation of the some of the polices that were announced earlier including harmonisation of NBFCs. This means the number of categories of NBFCs will be harmonised or reduced so that there is more activity based regulation rather than entity based regulation as RBI has stated.
Disclosure requirements for NBFCs according RBI will be reviewed to bring in more transparency and confidence back in the system. RBI also aims to make concerted efforts towards strengthening the supervisory pillars for NBFCs.
Concept of a senior supervisory manager as the central point of coordination for either a single large NBFC or groups of NBFCs has been floated.
There will be more onsite inspections and off-site surveillance mechanisms will also be strengthened.