After RBI's paper on new regulatory framework, what next for NBFCs?

Last week, the Reserve Bank of India came out with a discussion paper on the revised regulatory framework for non-banking financial companies (NBFCs), including housing finance companies, or HFCs. While they do play an important role, their growth and relatively lax regulation can pose even bigger systemic risks.  Over the last five years, their balance sheet more than doubled to Rs 49.22 trillion. In 2019-20, the balance sheet for the largest among urban cooperative banks and the regional rural bank were Rs 51,926.95 crore and Rs 36,302.66 crore, respectively. For two recen.....

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