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“The draft framework (on revolving credit) is a clarification. NBFCs were never allowed to offer revolver credit. NBFCs have been given directions against such practice in RBI’s past inspections. Now, due to emerging technology NBFCs are offering term loans as revolving credit. We have received a lot of feedback from stakeholders; we are studying it. We will form a fresh opinion on this issue, and we will issue final instructions. We must consider if this can lead to a systemic risk in this issue,” Malhotra said. Also read | RBI may hike interest rate further in December policy: Experts On August 6, the RBI issued draft norms that proposed that NBFCs be permitted to offer only term loans and not revolving credit products which generally have a maximum credit limit which borrowers can repay and use anytime. ET had reported that NBFCs are seeking relief from the RBI as the new regulations could disrupt credit products worth more than Rs 2 lakh crore and constrain access to finance for micro, small and medium enterprises (MSMEs) and individuals. Malhotra said that the RBI will assess the situation because making its final decision. “This is still being examined by the department and it has not reached at my levels. We will discuss internally with deputy governors and at my level and take the decision,” he said. Also read | A new rate game begins. What’s inside the RBI’s new playbook? He said bank credit to NBFCs has been quite robust at about 37% but there are no concerns on asset quality in the sector. “Credit growth for NBFCs is also robust but lower than that of banks. We do not see any issues or concerns relating to asset quality of NBFCs. We are always alert to such risks getting developed, not only from an asset quality point of view but also on demand and price pressures getting built,” he said. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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