Revised RBI norms for NBFCs 'negative' for small lenders:FIHPA

Jodhpur, Dec 2: Federation of Indian Hire Purchase Association (FIHPA) today said the recent revised RBI guidelines for Non Banking Financial Companies (NBFCs) are "negative" for small financiers.

FIHPA president Umesh Revankar said the minimum net worth for NBFCs was Rs 25 lakh pre-revision, but now all NBFCs are to attain a minimum net-owned fund of Rs 2 crore by March 2017. "Similarly, the bad loan classification of 180 days has now been reduced to half, which will have a negative impact on NBFCs, especially those in hire purchase industry," he added.

The regulator needs to give a special reconsideration to these small financiers, catering hugely to small businesses and enterprises, he said, adding that till then, the perception of financial inclusion would remain far-fetched.

The Reserve Bank had on November 10 introduced stricter rules for NBFCs in a bid to bring the norms at par with those of banks. These guidelines, which are to be introduced in a phased manner by April 2018, include requirement of higher minimum capital and reduction in the period for NPA.

Objecting to these revisions, the FIHPA has given a representation to the RBI indicating the impact of these guidelines on NBFCs and would soon be meeting Finance Minister Arun Jaitley in this regard.

PTI