New Delhi, July 5 (KNN) Proposals for strengthening regulatory authority of Reserve Bank of India (RBI) over Non-Banking Financial Companies (NBFCs) have been made, said Nirmala Sitharaman, Union Minister of Finance.

For purchase of high-rated pooled assets of financially sound NBFCs amounting to a total of Rs 1 lakh crore, government will provide a one-time six-month partial credit guarantee to Public Sector Banks (PSBs) for first loss up to 10%, another announcement she made while presenting the budget.

She announced to allow Foreign Institutional and Portfolio Investors to invest in debt securities offered by NBFC.

NBFC  is a company registered under the Companies Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance business or chit-fund business but does not include any institution whose principal business includes agriculture, industrial activity or the sale, purchase or construction of immovable property.