Hi,
I read that larger NBFCs are a time bomb that’s why RBI suggesting to turn it to bank. What are all the major changes will happen when an NBFC converted into a bank? Thanks
you must be referring to recent report from rbi working committee where they have suggested allowing nbfc’s to get banking license… it doesn’t mention that troubled nbfc’s will be converted to banks, doing this will already cripple our banking system more, committee has suggested to allow banking license to only those nbfc’s which are well run and have asset size of over 50000 crores… only to those nbfc’s which fulfill rbi’s criteria not any nbfc.
to get this licence offcourse they will have to make some changes but don’t thnk they will have to make changes to their core business, shareholding maybe… this is very vast and tricky subject, maybe you should explore more on google.
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Sure, thank you