{
  "id": 1385390,
  "title": "NBFCs seek RBI rethink on revolving credit curb",
  "url": "https://urgent.news/2026/08/16/nbfcs-seek-rbi-rethink-on-revolving-credit-curb-1385390",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-16T19:25:57.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/nbfcs-seek-rbi-rethink-on-revolving-credit-curb/articleshow/133284292.cms"
  },
  "original_language": "en",
  "account": "India's largest non-banking finance companies (NBFCs), such as Bajaj Finance, Tata Capital, and Shriram Finance, are requesting a meeting with the Reserve Bank of India (RBI) to discuss reconsideration of the proposed ban on revolving credit products. The lenders met on August 14 to determine their key concerns to convey to the RBI. A formal representation will be submitted through the Finance Industry Development Council, representing NBFCs, this week. The NBFCs argue that the ban could disrupt credit products valued over Rs 2 lakh crore, limiting access to finance for MSMEs and individuals. They urge the regulator to provide a regulatory rationale and specific supervisory concerns to justify the complete prohibition of such products. The draft amendment does not currently outline these justifications, and NBFCs contend that the proposed restriction could have significant negative impacts on credit growth, borrower access, competition, and the non-bank lending sector. The market for these products is expanding at a rapid rate, and nearly 90% of lending in this category serves MSMEs and individuals. NBFCs maintain that the products have not demonstrated adverse credit behavior or resulted in excessively high credit costs. They also note that the regulator's supervisory department expressed concerns about revolving credit products in previous inspection cycles but that lenders have since modified their products and processes without receiving any adverse feedback from regulators. The industry worries that the proposed ban would create regulatory advantages for banks, which continue to offer similar working-capital and short-term liquidity facilities. This could give banks an unfair competitive edge and contradict the goal of promoting fair competition between banks and NBFCs.",
  "summary": "Senior representatives of some of the country's largest NBFCs met on August 14 to discuss the issues they intend to raise with the RBI. The lenders will make a formal representation through the Finance Industry Development Council, the industry body representing NBFCs, this week, according to the people.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Economic Times",
        "title": "NBFCs seek RBI rethink on revolving credit curb",
        "url": "https://urgent.news/2026/08/16/nbfcs-seek-rbi-rethink-on-revolving-credit-curb",
        "published": "2026-08-16T19:25:57.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}