business π¦ RBI moves on shadow banks over credit ban threat
The RBI has requested data from the Finance Industry Development Council (FIDC) regarding India's shadow banks. Representatives of the FIDC met RBI officials to discuss alternatives to the proposed ban on revolving credit. Revolving credit, or flexi-loans, functions as a pre-approved credit line where interest is paid only on borrowed funds. This proposal is creating regulatory tension across the financial sector, potentially impacting many NBFCs. The outcome of these discussions will determine the future of this lending product. π¦