Won't hesitate to prevent collapse of any large NBFC, says RBI's Shaktikanta Das
"Liquidity requirements of NBFCs for the next three months is being monitored," Das added.
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Governor Shaktikanta Das asserted that the Reserve Bank of India (RBI) ‘won't hesitate' to prevent the collapse of any large non-banking finance company (NBFC).
Das was addressing media after the Monetary Policy Committee (MPC) meeting on December 5.
"The top 50 NBFCs in India are being regularly monitored. We are making a deep-dive into the books of NBFCs wherever required and know where the vulnerabilities lie," he stated.
Das said the liquidity requirements of NBFCs for the next three months are being monitored and assured that RBI “will not hesitate to act."
On credit flow to NBFCs, the Governor said the same is slowly reviving and funds are being accessed at a pre-IL&FS rate by better-performing companies. He added that the October policy also had measures to ensure credit flow from banks to NBFCs.
Das refused to comment on the Troubled Asset Relief Program-like (TARP) programme for NBFCs.
TARP was created and run by the US Treasury following the 2008 financial crisis, consisted of efforts to stabilize the financial system by having the government buy mortgage-backed securities and bank stocks.
To catch all the action from the Monetary Policy Meet, click here
Contrary to popular expectations, the MPC on December 5 maintained the benchmark repo rate at 5.15 percent, and kept its stance 'accommodative'.
Original Source: https://www.moneycontrol.com/news/business/economy/wont-hesitate-to-prevent-collapse-of-any-large-nbfc-says-rbis-shaktikanta-das-4702761.html