Fund flows to NBFCs hit in H1 as banks turn cautious

The Reserve Bank of India’s recent regulatory changes, including increased risk weights on bank lending to non-bank financial companies (NBFCs), have led to a funding slowdown for these lenders. This credit squeeze, particularly impacting unsecured and digital lending NBFCs, is likely to curb retail credit growth in the coming year. The Reserve Bank of India’s recent regulatory changes, including increased risk weights on bank lending to non-bank financial companies (NBFCs), have led to a funding slowdown for these lenders. This credit squeeze, particularly impacting unsecured and digital lending NBFCs, is likely to curb retail credit growth in the coming year.  Economic Times