RBI's draft report on NBFCs released

Mumbai, Mar 13 (UNI) Reserve Bank of India (RBI) today released the draft report of its Internal Working Group on issues relating to level playing field, regulatory convergence and regulatory arbitrage in the financial sector.

''With the economy growing in all its facets, there has been an increasing interest in setting up Non-Banking Financial Companies (NBFCs) from corporates, banks and foreign entities'' RBI said.

Though banks and NBFCs compete for similar kind of business, the regulations governing them are different.

RBI, in this backdrop, considered it necessary to study the playing field between bank sponsored NBFCs and other NBFCs and to bring about regulatory convergence and a level playing field.

A group was set up to look into these issues and give its recommendations.

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