RBI to issue norms for Bank like asset liability rules for NBFCs

RBI in 2019 is planning to strengthen the asset-liability management (ALM) framework for non-banking financial companies (NBFCs) and reviewing the extant guidelines on compensation of whole-time directors of private sector banks.

The proposal to strengthen the ALM framework for NBFCs on lines similar to that for banks, and harmonise it across different categories of NBFCs, comes in the wake of the IL&FS imbroglio.

“NBFCs faced challenging times recently. The recent experience of debt default of a systemically important NBFC highlighted the vulnerability and need for strengthening regulatory vigil on the sector in general and on the ALM framework in particular,” the RBI said.