Categories: Economy

NBFCs need to monitor rollover and interconnected risks: CEA

Chief Economic Advisor (CEA) Krishnamurthy Subramanian on Thursday said that non-banking financial companies (NBFC) should monitor their rollover risk and interconnected risk and should also strive for further deepening of financial inclusion in the country.

Speaking at FICCI's 1st NBFC Summit, Subramanian said cautioned NBFCs against "zombie" lending.

"Every NBFC needs to monitor its rollover risk and interconnected risk," he said.

His suggestion gains significance as the NBFC segment in India has been under severe stress following the IL&FS crisis which came into light in 2018.

The CEA also stressed on the usage of technology usage. He said that the use of technology can be far higher in the financial sector.

He was of the view that it is the financial sector which has to lead India's growth story..

IANS

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