....The Reserve Bank of India has raised red flags. In a recent working paper calling for tighter norms for NBFCs, it said: “The higher borrowings of NBFCs, especially from the banking system, raise some concerns about their liquidity position. More so, if such reliance happens to increase further... These concerns will be further accentuated in case the banks’ own liquidity position becomes tight at the time of a crisis or even in a crisis-like situation... More than 68 per cent of the consolidated balance sheets (of NBFCs) constitute borrowings.”......
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