RBI proposes curbs on revolving credit facilities for most NBFCs
- The RBI's draft rules propose restricting revolving credit facilities for most non-banking financial companies.
- NBFCs would generally need to offer credit as term loans, where repaid principal does not restore the limit.
- The change could affect products like loans against securities that rely on flexible drawdown and repayment.
- NBFCs are likely to reassess their credit products, technology and processes if the framework takes effect.
Source: finance.yahoo.com
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