RBI to harmonise NBFC regulations, says deputy governor

Now, there are different regulations for various categories of NBFCs, creating scope for arbitrage

Press Trust of India  |  New Delhi 

There is scope for harmonisation of regulations covering non-banking financial companies (NBFCs) and the Reserve Bank (RBI) is moving in that direction, Deputy Governor N S Vishwanathan said on Wednesday.

Currently, there are different regulations for various categories of NBFCs, creating scope for arbitrage.


"There is a scope for harmonisation of regulations across and we are moving in the direction of harmonising some of the regulations. We will get clarity on this sooner than later," he said at an event organised by in New Delhi.

He also said there is a need to create some new types of to cater to the needs of the growing economy.

"We are also required to create some new types of because business demands it, [the] situation demands it. It is difficult at this moment to look at it within larger NBFCs," he said.

"So one, we have to create account aggregator as NBFC category. Secondly, we have put out the discussion paper on peer to peer lending platforms. Hopefully, we will finalise the regulations soon," he said.

The had floated a consultation paper in April 2016 on peer to peer (P2P) lending platforms.

has gathered momentum globally and is taking root in India.

Although nascent in India and not significant in value yet, potential benefits that promises to various stakeholders (to borrowers, lenders and agencies) and its associated risks to the financial system are too important to be ignored, the consultation paper said.