Reining In NBFCs

.....In September 2010, the RBI constituted a committee headed by Deputy Governor Usha Thorat (she was just about to retire) to look at how to better regulate NBFCs. The Thorat committee submitted its report, and the RBI has now sent its draft guidelines based on it to the finance ministry. If all the recommendations in the RBI draft are accepted, the NBFC universe will see a shakeout and lots of exits. In fact, over 70 per cent of NBFCs may have to deregister from the RBI. The Thorat committee recommendations and the RBI draft have drawn howls of protest from NBFCs, especially the smaller ones. Even some of the...........

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