New Delhi: The Finance Ministry may ask the Reserve Bank of India (RBI) to put strong regulatory framework around NBFCs accessing non-bank public deposits, like pension and provident fund, as these are savings of the salaried class and must be kept away from avoidable risks like infrastructure NBFCs.
Faced with liquidity crunch after IL&FS default and with rising number of defaults, the shadow bankers are seeking a bailout in the form of a separate liquidity window. But any decision on this would require detailed discussions, sources said.
According to Finance Ministry sources, though non-banking financial companies (NBFCs) are major finance providers, they are at present in deficit. “Their sources of funds are the market, not public. There has to be greater granularity in their liquidity requirements vis-a-vis the assets and liabilities, and the RBI will look into that.”
Remarking that there are asset-liability mismatches in some cases, sources said, “only the infrastructure-funding NBFCs need a separate credit window. Public deposit is not the option, in case of such NBFCs.”
According to another source, retirement and insurance funds are hard-earned money of the middle class saved for twlight years and emergencies. (IANS)
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