“The Reserve Bank is closely monitoring these areas and will not hesitate to take appropriate action, if necessary,” RBI Governor Shaktikanta Das said on Wednesday. The consequent high-cost and high indebtedness could pose financial stability risks, if not addressed by these NBFCs,” Governor said. AdvertisementTalking to reporters in the post policy conference, Das said that the push effect is confined to certain NBFCs only. RBI Deputy Governor Swaminathan J said the advisory is for those NBFCs that are pursuing a high risk high growth strategy and also to certain segments which were likely to get into stress. Das also asked NBFCs to review their prevailing compensation practices, variable pay and incentive structures, some of which appear to be purely target driven in certain NBFCs.

Source: Indian Express October 10, 2024 03:26 UTC