Need for fresh look at NBFC supervision; norms soon on liquidity risk mgmt: Das

Concerned over stress in the NBFC sector, RBI Governor Shaktikanta Das Saturday said there is a need to have a fresh look at the regulation as well as supervision, and the central bank will come out with guidelines on liquidity risk management framework shortly.

Addressing 15th Annual Convocation of Post Graduate Diploma in Management at National Institute of Bank Management (NIBM) here, he said, fine tuning and improving supervision and regulation are continuous exercise.

In this direction, he said, the RBI has reduced the period of the NBFC supervision to 12 months from 18 months earlier.

He also expressed hope that the Board of Directors of non-banking financial companies (NBFCs) to act diligently and take necessary action based on Reserve Bank's supervision reports.

Further, Das said, "Our objective is to harmonise the liquidity norms between banks and NBFCs, taking into account the unique business model of the NBFCs vis-a-vis banks. In this context, the final guidelines on the ...