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FM warns lenders, NBFCs of risks of over-lending
Mint Mumbai
|November 24, 2023
Finance minister Nirmala Sitharaman on Thursday reiterated the Reserve Bank of India's (RBI) word of caution to lenders to avoid downside risks while focussing on their core business.
She also warned non-banking financial companies (NBFCs) and small finance banks (SFBs) to avoid risks from over-lending.
Speaking at the Digital Acceleration & Transformation Expo 2023, Sitharaman said the RBI has asked banks to avoid exuberance while redlighting NBFCs and SFBs from going "too far" in lending.
"The RBI has alerted NBFCs and SFBs to be careful so that they don't go too far too soon and face downside risks," Sitharaman said.
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