RBI recommends scale-based regulations for shadow banks
by Nidhi Bhati
The Reserve Bank of India (RBI) has proposed an overhaul of the non-banking financial companies (NBFCs) and recommended a scale-based approach with stricter regulation and governance norms, according to a discussion paper released today. The proposed regulatory and compliance guidelines will bring the 25-30 large shadow banks to parity with the state-owned and other private commercial banks in the country. New norms have also been suggested for the mid to smaller NBFCs.