GK and monthly revision

RBI says no to special exposure relaxations for state NBFCs

The Reserve Bank of India (RBI) has rejected requests from government-owned Non-Banking Financial Companies (NBFCs) for special exemptions from concentration norms, reinforcing its commitment to a principles-based regulatory framework. This decision is significant as it maintains the integrity of financial regulations and ensures stability within the sector. By denying increases in single counterparty limits, the RBI aims to enhance regulatory clarity and prevent excessive risk exposure among public sector enterprises.