RBI draft may restrict NBFCs from offering revolving credit without approval
The Reserve Bank of India’s draft rules would limit non-bank lenders to term loans unless they have approval to offer revolving credit. NBFCs already authorised to issue credit cards, including SBI Cards, would be exempt.
RBI’s draft circular would bar NBFCs from offering revolving credit products without approval, limiting them to term loans. NBFCs already authorised to issue credit cards, including SBI Cards, would be exempt.
Why this matters
The draft extends the RBI’s recent push to standardise lending practices, following proposed common interest-rate reset norms and tighter loan-recovery borrower-contact rules.
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