Closer coordination among regulators is essential for the stability of non-banking financial companies (NBFCs), according to a top official at the Reserve Bank of India (RBI).
The Deputy Governor of RBI emphasized the importance of regulators working together to ensure the smooth functioning of NBFCs. By collaborating closely, regulators can better monitor and address any potential risks that may arise within the sector.
This coordination is crucial in maintaining the stability of NBFCs, which play a significant role in the Indian financial system. By working together, regulators can enhance their oversight and supervision of NBFCs, ultimately safeguarding the interests of investors and maintaining the overall stability of the financial sector.
The RBI has been actively engaging with other regulators to strengthen coordination and enhance regulatory oversight of NBFCs. This collaborative effort is aimed at addressing any challenges or vulnerabilities in the sector and ensuring that NBFCs operate in a sound and stable manner.
Overall, closer coordination among regulators is key to promoting the stability and resilience of NBFCs, ultimately benefiting the broader financial system and the economy as a whole.