New Delhi, July 2 (KNN) The government of India is considering strengthening the Reserve Bank of India’s regulatory and supervisory powers over the NBFs- Nonbanking finance companies (NBFCs), said Nirmala Sitharaman, Union Minister for Finance.

In a reply to Lok Sabha, Sitharaman said that the Central Bank has informed that with a view to strengthening the NBFCs and maintain stability of the financial systems, it has been taking necessary regulatory and supervisory steps.

“Government has received a proposal from RBI to strengthen RBIs regulatory and supervisory powers under the Reserve Bank of India Act, 1934, and the same is under consideration” Finance Minister said in a written reply.

She further said that the government, from time to time, infuses capital in Public Sector NBFCs based on an objective assessment of requirements.  Moreover, the government does not have plans to infuse funds in privately held shadow banks

However, there are no proposals for the government to recapitalize private NBFCs, she added. (KNN/Lavannya)