RBI assessing revolving credit norms for NBFCs: Malhotra

Reserve Bank of India Governor Sanjay Malhotra indicated that the central bank is evaluating regulations on revolving credit offered by non-banking finance companies. The RBI had issued draft norms that would restrict NBFCs to providing only term loans without revolving credit facilities.

Malhotra stated that systemic risks associated with these regulatory changes will be carefully assessed before a final decision is made. The review aims to balance consumer access to credit with financial stability concerns.