FISME warns RBI’s proposed NBFC revolving-credit curbs could squeeze MSME funding
Industry body FISME has urged the RBI to reconsider draft restrictions on revolving credit by NBFCs, saying the move could constrain working-capital access for small retailers, manufacturers and suppliers. The RBI is seeking to address opaque lending and loan evergreening.
What happened
Reserve Bank of India · FISME urged RBI to reconsider a proposed ban on NBFC revolving credit, warning it could restrict MSME working-capital funding. The
Key facts
- August 28, 2026
- 10-11%
- 31% of GDP
- 35% of manufacturing output
- close to half of merchandise exports
Why this matters
Acquirers should reassess targets’ dependence on NBFC revolving facilities, as regulatory changes may create distressed-deal opportunities but also expose hidden working-capital and supplier-finance liabilities.