RBI Governor flags bank-NBFC links as 'contagion risk'
Thu, Nov 23, 2023 9:30 AM

RBI Governor flags bank-NBFC links as 'contagion risk'

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RBI Governor Shaktikanta Das emphasizes the need for NBFCs and banks to ensure sustainable credit growth while avoiding exuberance and be vigilant about any risks posed by concentrated borrowing linkages between them. He urges banks to evaluate their own exposure while NBFCs must focus on expanding sources of funding. He also calls upon MFIs to use flexibility in setting rates judiciously.

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