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RBI Seeks Details On NBFCs' Supply Chain Finance Products

The Reserve Bank of India (RBI) has requested detailed information from non-banking financial companies (NBFCs) regarding their supply chain finance products. This move comes in response to concerns about potential evergreening of loans, where new loans are used to pay off existing ones, thereby masking the true financial health of borrowers. The RBI is particularly interested in understanding the structure, risk management practices, and the extent of exposure these NBFCs have in supply chain financing. This scrutiny aims to ensure transparency and prevent any systemic risks that might arise from such financial practices. The request for information underscores the RBI's commitment to maintaining financial stability and protecting the interests of all stakeholders involved in supply chain financing.

Read the Full inc42 Article at [ https://inc42.com/buzz/rbi-seeks-details-on-nbfcs-supply-chain-finance-products/ ]