RBI plans to bar NBFCs from offering revolving credit without approval

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In a recent announcement, the Reserve Bank of India has introduced fresh regulations for non-banking financial companies. Moving forward, NBFCs will be restricted to providing only term loans, effectively barring revolving credit offerings, though those currently authorized to issue credit cards are not affected. Standalone NBFCs will require prior permissions and significant funding to independently offer credit cards. The central bank is actively seeking input on these upcoming policies.