π NBFCs ask RBI to rethink revolving credit ban
India's largest NBFCs are seeking a meeting with the Reserve Bank of India regarding the proposed blanket prohibition on revolving credit products. Senior representatives from these lenders met on August 14 to discuss the issues they plan to raise with the RBI. The restriction could disrupt credit products exceeding Rs 2 lakh crore and hinder finance access for MSMEs and individuals. The industry argues the ban could create regulatory arbitrage favoring banks, contradicting competitive neutrality. They contend that replacing these facilities with term loans would increase operational costs for borrowers. π