(PTI)
The government is considering strengthening the Reserve Bank’s regulatory and supervisory powers over the non-banking finance companies (NBFCs), Finance Minister Nirmala Sitharaman said in the Lok Sabha. Replying to a question, the minister said RBI was closely monitoring the liquidity position of NBFCs and will continue to monitor the activity and performance of the sector with a focus on major entities and their interlinkages with other sectors.
The central bank, she added, has also informed that with a view to strengthen the NBFCs and maintain stability of the financial system, it has been taking necessary regulatory and supervisory steps.
“Government has received a proposal from RBI to strengthen RBI’s regulatory and supervisory powers under the Reserve Bank of India Act, 1934, and the same is under consideration,” Sitharaman said in a written reply. She further said that the government, from time to time, infuses capital in public sector NBFCs based on an objective assessment of requirements.
