MUMBAI: RBI has rejected the demand for level-playing field by NBFCs on par with banks.
Responding to a presentation made by NBFC representatives, RBI deputy Governor Shyamala Gopinath said: " banks were governed by separate and more stringent set of rules and they have various statutory liquidity requirements. So there is no point in asking for parity with banks."
NBFCs discussed a number of issues, including tax deduction allowed to banks on their NPAs, NBFCs not being included in the process of financial inclusion, among others. They also asked for a revision of deposit limits accepted by them, which has remained unchanged since 1998.
One of the major points of contention was the various versions of the definition of 'infrastructure' being used by various regulatory bodies, which needs some streamlining based on the nature of assets, class of sector and other parameters. Besides, they also asked for extending the scope of SARFAESI to NBFCs.
NBFCs met the RBI top official, following the central bank's recent circular asking them to step up capital to 15% of their assets from the earlier stipulated 12%. Ms Gopinath said: "In our communication with NBFCs, we had found that except for one, most of them already maintained their capital adequacy ratio above the benchmark."
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