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RBI Mulls Halting NBFCs From Duplicating Business
August 29, 2025
|Financial Express Bengaluru
Under Lens
The Reserve Bank of India (RBI) is mulling getting shadow lenders (NBFCs) to cut down business activities of subsidiaries that clash with that of the parent, in line with rules already proposed for banks, sources said.
The RBI has been discussing this proposal with some NBFCs, as the regulator seeks to cut down risks in a sector that blew up a few years ago, sources said. More guidance from the regulator, especially on any overlap in the lending business between subsidiaries and their parent firm, is expected to be issued soon, they said.
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