No rate cut, but RBI to relax norms

The RBI may also relax some of the restrictions on operating so-called transaction accounts— current accounts, cash credit accounts and overdraft accounts.

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RBI governor Sanjay Malhotra.

(PTI)

NBFCs

The measures were positive for non-bank lenders as well. RBI proposed lower risk weights on NBFC loans to operational projects under public-private partnerships, anda ‘principle-based framework’ for lending to this segment which would aim to align risk weights with risk characteristics of the projects. The RBI may also issues fresh licences for urban cooperative banks (UCBs), something it stopped in 2004 given the weaknesses in the segment.

The rate pause was expected, said Sudipta Roy, managing director and chief executive officer, L&T Finance, adding the measures were “aptly timed”, and will support aspirational growth levels.