04 Mar 2026 | 5 Mins Read
RBI tightens NBFC lending to bad borrowers with board-approved guidelines
Flipitmoney
The Reserve Bank of India (RBI) has questioned at least three non-banking finance companies (NBFCs) on their lending practices, requiring a board-approved policy to justify new loans to borrowers who have already defaulted. RBI aims to prevent "evergreening" where struggling borrowers receive new loans to repay existing loans, hiding the true extent of sticky loans in asset books.