RBI Governor red flags high dependence of NBFCs on bank loans ...Middle East

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RBI Governor red flags high dependence of NBFCs on bank loans
Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday expressed grave concern over the high “concentration” of credit that NBFCs were availing from banks to finance their lending operations and said this has emerged as “a risk” in the system. Addressing the FIBAC 2023 conference here, Das said that there was a need for NBFCs to raise funds from other sources and reduce their dependence on banks to scale down the risk due to the high “interconnectedness”. He also said that many lenders were depending too much on the algorithms to make their decisions and there was a need to analyse data more carefully before making investment decisions. The RBI Governor also underlined th

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