RBI working group suggests permitting large NBFCs to convert into bank

Divakar Vijayasarathy, founder and managing partner, DVS Advisors LLP, said, “Though the RBI committee recommended for conversion of NBFCs into banks, there have been reports in the past that the Board of Financial Supervision of RBI has in principal decided not to issue fresh licenses for next couple of years. Further, in the past as well, NBFCs which got converted into banks faced issues in terms of higher provisioning for legacy NPAs,”