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Big NBFCs Can Enter Banking Space With Proper Guardrails
The New Indian Express Mangaluru
|July 26, 2025
In a major break from the past, the Reserve Bank Governor Sanjay Malhotra on Friday said large non-bank finance companies can enter banking provided enough guardrails are put in place.
Existing norms don't allow NBFC-promoted business groups or corporates directly to convert themselves into banks or enter the banking space even though they are eligible to become small finance banks or payment banks under stringent eligibility norms. In a fireside chat at the Financial Express-organised BFSI summit here on Friday, the governor said, "RBI has a cautiously open approach to the evolving financial landscape."
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