RBI planning to tighten liquidity mismatch margins for NBFCs: Report

The Reserve Bank of India (RBI) is likely to impose new limits on the liquidity mismatches that Non-Banking Financial Companies (NBFCs) deal with, says a report published in an English daily.

According to Business Standard, the central bank is planning to implement new regulations as part of its plan to push the NBFCs towards more steady sources of funding.

The report reveals that the new guidelines are likely to be introduced in a phased manner and will include both systemically vital non-deposit taking, and all deposit-taking entities.

Besides, the RBI is analysing into the cumulative mismatches (the difference between outflows and inflows of funds) of the NBFCs. Currently, the NBFCs are set at 10 percent for one-day to a year time-performa and 15 percent for one-day to a month’s duration, added the Report.

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