Shriram Finance Executive vice-chairman Umesh Revankar on Friday said it is necessary to have lenders of all forms and sizes in order to build a credit culture.
“I think we need NBFCs and even banks of all forms and sizes to reach out and build a credit culture. Otherwise, we go back to the informal sector again,” Revankar said at an event organised by Assocham.
“So, I do not think there is a supervision or regulatory requirement to reach out to so many people. A broad regulation is more than sufficient,” he added.
Meanwhile, former Reserve Bank of India deputy governor SS Mundra said a risk-based approach may be needed while regulating non-banking financial companies.
“A majority of NBFCs are either monoline or dualine, and very few are specialised. If that is the reality on the ground, it needs to be seen whether there is a room to introduce risk proportionate regulation,” Mundra said.
Citing recent instances of their proposals creating unease in the industry and decisions getting overruled or withdrawn, Mundra called for an “introspection” among financial regulators. On the other hand, industry players must also introspect various aspects.
Citing recent instances of their proposals creating unease in the industry and decisions getting overruled or withdrawn, Mundra called for an “introspection” among financial regulators. On the other hand, industry players must also introspect various aspects, he added.