Once again the RBI has issued warnings to banks and NBFCs to mend their ways. It is not the first time this has happened, nor will it be the last. The RBI is doing its job, which is to ensure that credit growth is orderly and does not lead to a crisis as everyone goes overboard to lend. This is not to say that there are no bad apples in the financial services sector. But painting all companies with the same brush achieves little. It would be wrong to compare an NBFC which is focused on rural lending for the last two decades with one that is into unsecured lending in urban areas. While both are NBFCs, their operating matrices are different. And just because the second is under the lens, should the first also be punished?
