RBI's New Governor Adopting a More Consultative Approach in Decision Making: Nuvama

The RBI's decision to roll back increased risk weightage on loans to NBFCs and MFIs reflects a more consultative approach under its new Governor.

- TBG NETWORK

The Reserve Bank of India (RBI) has adopted a more consultative approach under its new Governor, as reflected in its recent decision to roll back the increase in risk weightage on loans to Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs), according to a report by Nuvama Research.

The report pointed out that, at a media interaction on February 7 following the monetary policy announcement, the RBI Governor and Deputy Governor had stated that the central bank was unlikely to relax risk weights on NBFC loans due to interconnected risks.