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NBFCs have long been supporting the financial sector by augmenting credit accessibility and financial inclusivity. Their contribution to thriving the corporate and financial landscape is unprecedented and invaluable. Similar to traditional banks, NBFCs offer various services with few exceptions. NBFCs experience myriad compliances when it comes to registration and operation, just like conventional financial institutions. Reserve Bank of India (RBI), the apex regulator, comes up with revised norms occasionally to amplify the transparency and productivity of these entities.
For years, the number of NBFC regulations has remained a matter of debate among financial institutions, especially private lenders. Their impact has significantly influenced the working of diverse NBFCs, resulting in lower productivity and intense compliance.
The advent of SBR Master Directions boasting new NBFC regulations seems to be a big leap in the NBFC realm as they aim to consolidate various norms and reinforce transparency. Their all-encompassing nature ensures better control and instills a robust regulatory framework.
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