The Finance Development Industry Council (FIDC) an association of shadow banks is set to apply to Mint Road to become a selfregulatory organisation (SRO) even as it hunts for a chief executive officer (CEO). Non-banking financial companies' (NBFCs) credit to GDP ratio stood at 12.6 per cent in FY23 (and it grew to 18.7 per cent of banking assets from 13 per cent a decade ago). Despite this surge, is it not surprising that little initiative was taken by these firms to set up an SRO in all these years (and Mint Road's nudge was not material to do so)? Pose this question to senior NBFC officials and they will point to the multiplicity of categories with no coherence in either their activities or regulation. At times, within the same business group, there are NBFCs focused on different avenues with a core investment company thrown in.
"Given the nature of the NBFC business, I cannot predict if there will be more than one SRO. Even in microfinance, which is homogenous, you have more than one SRO," says Umesh Revankar, chairman of FIDC and the executive vice-chairman of Shriram Finance. It's an indirect way of putting it across that if microfinance can have two SROS - MicroFinance Institutions Network (MFIN), and Sa-dhan - why should it be any different for NBFCs? There's already chatter of a SRO for NBFCs playing in the priority-sector space (though such a carve-out is only on the books of banks). Their demand: Bank exposures to them should be deemed as priority-sector loans - and it has reached the doorsteps of the Prime Minister's Office, no less. Early indications are we are going to see a mushrooming of SROs. In fintech, two have lined up: Digital Lenders Association of India and the Fintech Association for Consumer Empowerment (FACE). Even as there are whispers that the Indian Banks' Association and the Payments Council of India are to set up an SRO for digital payments.
The big jostle
Diese Geschichte stammt aus der April 08, 2024-Ausgabe von Business Standard.
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Diese Geschichte stammt aus der April 08, 2024-Ausgabe von Business Standard.
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