JOIN USThe Reserve Bank of India (RBI) is simplifying and rationalising the registration process of new non-banking finance companies (NBFC), a top RBI official said.
“The new application forms will be simpler and the number of documents required to be submitted will be reduced and the entire process could be made online for ease, speed and transparency,” RBI deputy governor R Gandhi said while inaugurating an ASSOCHAM summit on ‘NBFCs: The Changing Landscape’.
Considering the developmental needs of the economy, the RBI will continue to approve new types of NBFCs, Gandhi added.
According to Gandhi, the regulator will soon be putting up a concept note on peer-to-peer (P2P) lending. “RBI will soon put up a concept note on P2P on its website for public comments and the contours of regulating P2P lending will be decided in consultation with markets regulator Securities Exchange Board of India (SEBI),” Gandhi said.
On the issue of allowing deposit taking activity of NBFCs, Gandhi said that it is a specious argument because maturity transformation automatically runs the risk of asset liability mismatches, and a non-bank runs a much higher liquidity risk, hence it will be prudent to let only banks accept deposits.