RBI needs to focus on crypto currency: ASSOCHAM
RBI needs to focus on crypto currency: ASSOCHAM

Assocham delegation meets RBI Guv over liquidity crisis among NBFCs

Agency News

New Delhi, Jan 11: A high-level Associated Chambers of Commerce and Industry of India (ASSOCHAM) delegation on Friday met Reserve Bank of India Governor Shaktikanta Das to highlight the issues on liquidity crisis being faced by non-banking financial companies (NBFCs) and housing finance companies (HFCs).

The delegation, led by its former president Sunil Kanoria, also comprised of its Secretary General Uday Kumar Varma along with Dewan Housing Finance Corporation CMD Kapil Wadhawan;, Finance Industry Development Council DC Mahesh Thakkar, and Magma Fincorp MD Sanjay Chamria.

Mr Kanoria who is also vice-chairman (VC) of SREI Infrastructure Finance Limited (SIFL) said the RBI Governor gave a very patient hearing to ASSOCHAM delegation and assured to address the genuine concerns of the industry.

The discussion which stretched over half an hour, Mr Kanoria said, was very productive, and the RBI Governor not only carefully listened to suggestions made, but also apprised the delegation of steps the Reserve Bank had taken in the recent past to ease the situation.

The ASSOCHAM delegation strongly felt that the RBI seemed intent to do as best as it can to address the problem.

"We reiterated our concern that while the asset side of NBFCs is subject to regulation which has been harmonised with that of banks, the liability side -- fund raising activity still remains highly restricted, thereby creating a liquidity crunch for the sector," Mr Kanoria added.

The delegation also raised the issues of over-regulation hampering growth of unique NBFC model of lending, change in MUDRA norms for refinancing NBFCs to make them viable and acceptable; allow strategically important NBFCs to accept public deposits.

The Chamber also demanded that liquidity window be provided for NBFCs/HFCs against sale of secured loans, all HFCs be permitted access to NHB refinance facility.

During the meet, they said application of NBFCs willing to convert to banks be treated differently from any other applications for banking licence and due diligence be less time consuming. (UNI)