Mumbai, PTI
After acting against two non-banking financial companies (NBFCs) following concerns on their business practices, RBI Governor Shaktikanta Das said there is no system-wide problem with such lenders.
Addressing the customary post-policy press conference, Das said it is not fair to perceive the actions which came on consecutive days last month as a spate of regulatory interventions.
As a part of the supervision, we take regular review of all players, particularly the major players. I don’t want to say that this is a system-wide problem because we have supervised all the players. The action is only in outlier cases, Das said.
Earlier, he also said the country’s financial sector is stable.
He said if the RBI officials find some deviation or non-compliance during the supervision process, the first attempt is for sensitizations of the entity’s management on a bilateral level to take the corrective action.
Where we see the problems are huge, or the problems are persistent, then only we act, he said, explaining the trigger for the regulatory actions.
It can be noted that on March 4, the RBI asked IIFL Finance to stop sanctioning or disbursing gold loans with immediate effect, and followed it up by barring J M Financial from giving loans against shares and debentures immediately on observing issues in loan processing and governance.
