NBFCs of certain sizes should be subject to the same regulations as banks, says RBI
RBI statement is in the backdrop of risks emanating from the huge financial credit issued to NBFCs
NBFCs have been the largest net borrowers of funds from the financial system
The central bank believes that risks from NBFCs can be passed on to the banking system
Now on, NBFCs will be subject to a more stringent regulatory scrutiny
NBFCs are financial institutions offering various banking services but do not have a banking license
They remain as a crucial source of credit for MSMEs
