To be or not To be: NBFCs in India face their moment of truth
Synopsis
Analysts said large NBFCs who were thriving on the availability of easy money and soft regulations will now have to brace for tighter supervision on par with banks, forcing a rethink on their existing structure.
HDFC's merger into its banking arm has brought into focus the future of non-banking finance companies (NBFCs) as tightening regulations and greater oversight from the Reserve Bank of India (RBI) have slowly eroded the advantages of being a shadow bank. Analysts said large NBFCs who were thriving on the availability of easy money and soft regulations will now have to brace for tighter supervision on par with banks, forcing a rethink on their
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