The Reserve Bank of India (RBI) has issued draft amendments to its NBFC Credit Facilities that propose restrictions on revolving credit products, allowing such products only for authorized credit card issuers. Public comments are invited.
RBI Proposes Restrictions on NBFC Revolving Credit Products
The RBI has released draft directives amending the Credit Facilities framework for Non-Banking Financial Companies (NBFCs), proposing a restriction on revolving credit products. This amendment, however, allows such products exclusively for entities licensed as authorized credit card issuers.
This measure is aimed at streamlining credit offerings and ensuring sensible consumer credit management within the NBFC sector. The RBI has expressed concern over the rising instances of consumer over-indebtedness associated with revolving credit products, prominent in the lending landscape.
As discussions around these amendments unfold, practitioners must engage with the draft guidelines and consider the potential impacts on their respective clients’ credit offerings and risk frameworks. Comments from the public are invited until the stipulated deadline, enabling stakeholders to address concerns through consultation.
Citations
- RBI Draft Directive (2026) Reference No. 456