RBI Executive Director Lakshmi Kanth Rao highlights the need for NBFC compliance, customer protection, and RBI guideline adherence in India's financial sector, promoting self-regulation and industry collaboration.
RBI Executive Director Lakshmi Kanth Rao emphasizes the importance of compliance and customer protection in India's non-banking financial company (NBFC) sector, stating they are critical to the financial system. NBFCs contribute to diversification and innovation and are growing in size, necessitating a shift from activity-based regulation to a framework considering both activity and scale. Rao calls for NBFCs to strengthen compliance systems and adhere to RBI guidelines, encouraging collaboration among traditional banks, NBFCs, and capital markets to strengthen infrastructure financing in India. The RBI has invited applications for Self-Regulatory Organisations (SROs) for NBFCs, allowing them to play a strong role in regulating themselves.
June 20, 2024
5 Articles