In a bid to promote the growth of Non-Banking Financial Companies (NBFCs), the Reserve Bank of India (RBI) is soon going to sync in the regulations pertaining to the sector, said NS Vishwanathan, Deputy Governor of RBI.
At present there are several regulations for various categories of NBFCs, escalating the cause for arbitrage.
“There is scope for harmonisation of regulations across NBFCs, and we are moving in the direction. We will get clarity on this sooner than later,” he said.
He also pointed out the need to create new types of NBFCs to meet the requirements of the growing economy.
“We are also required to create some new types of NBFCs because business demands it, the situation demands it. It is difficult at this moment to look at it within the larger NBFCs,” he said.
“So one, we have to create ‘account aggregator’ as an NBFC category. Secondly, we have put out a discussion paper on peer-to-peer (P2P) lending platforms. Hopefully, we will finalise the regulations soon,” he added.
Last year, the apex regulatory had circulated a consultation paper on Peer-to-Peer (P2P) lending platforms.
P2P lending is emerging as a popular choice in the banking segment especially in India.
“Although nascent in India and not significant in value yet, the potential benefits it promises to various stakeholders (borrowers, lenders, and agencies) and its associated risks to the financial system are too important to be ignored,” said the consultation paper released by the RBI, last year.