The Department of Economic Affairs Secretary S C Garg recently pointed out that data points are very poor when it comes to non-banking finance companies (NBFCs). He also talked about lacunae in the regulations. Garg made this comment in connection with the IL&FS crisis as the issue suddenly caught everyone off guard.
Like banks, NBFCs are regulated by the Reserve Bank of India (RBI). The central bank also releases its report on stress-testing of NBFCs and also their interconnectedness with the financial system. Clearly, there is a case of strengthening the asset liability framework for NBFCs, but there are enough data points on NBFCs. Take a look: