The Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the central bank is closely monitoring the activity, performance and developments of the Non-banking Financial Companies (NBFCs) and will not hesitate to take any steps required to maintain the financial stability of the country.
During a press conference, Das said, “We have been closely monitoring the activity, performance and the developments in the NBFC sector including that of the housing finance companies. We are also monitoring major entities in this universe of the NBFCs and Housing Finance Companies (HFCs). So far as RBI is concerned, it remains committed to ensuring we have a robust well-functioning NBFC sector and the RBI will not hesitate to take whatever steps are required to ensure that financial stability is not adversely impacted in any manner by any development.”
His remarks came in the wake of the sector plunging into turmoil following debt defaults by IL&FS and some of its subsidiaries and liquidity issues being faced by DHFL.
“As you know the periodicity of the NBFC supervision was about 18 months earlier. Now it is reduced to 12 months. So every year there is a major inspection of the NBFCs. Major Entities are being closely monitored,” Das added.