Industry body Associated Chambers of Commerce and Industry of India (Assocham) met Reserve Bank of India (RBI) Governor Shaktikanta Das in New Delhi on Friday highlighting the liquidity crisis faced by non-banking financial companies (NBFCs) and housing finance companies.

“We reiterated our concern that while the asset side of NBFCs is subject to regulation which has been harmonised with that of banks, the liability side i.e. fund raising activity still remains highly restricted, thereby creating a liquidity crunch for the sector,” Assocham’s past president Sunil Kanoria, who is also the vice-chairman of SREI Infrastructure Finance (SIFL), said in a press statement.

In the half-an-hour meeting with the Governor, Assocham highlighted the concerns related to “over-regulation” it had raised with Prime Minister Narendra Modi in December.