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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
An industry letter to the central bank has sought clarification on the regulator’s advice to some NBFCs to cease or modify their supply-chain finance products.
The Reserve Bank of India is likely rethinking its stance on supply-chain finance products sold by non-banking financial companies. Supply-chain financing allows lenders—an NBFC or a bank—to pay suppliers on behalf of buyers, helping free up working capital for buyers.
According to a letter The Morning Context has seen, addressed to the RBI by the Finance Industry Development Council, the central bank has advised some NBFCs to stop offering certain supply-chain finance products or modify them. (FIDC is a representative body of NBFCs.) Additionally, a senior executive at a leading NBFC, on condition of anonymity, has confirmed that the RBI …
The acquisition of IDBI Bank puts his Fairfax smack dab in the middle of the RBI’s rules on bank ownership. It must now decide whether to sell CSB Bank or merge the two lenders, neither of which will be easy.
Lenders stand to gain a lot more than borrowers in the current challenging market environment
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
