Mumbai, July 26 (KNN) As many as 90 Non-Banking Financial Companies (NBFCs) have stopped operations since July 19, 2018 as RBI has blacklisted some and some have themselves surrendered their certificates to the apex bank.

On Wednesday alone the Reserve Bank of India cancelled the certificates of 25 NBFCs. On July 19, 29 plus 16 NBFCs were blacklisted and on July 20 and 23, certificates of 12 and 8 NBFCs were cancelled respectively.

Retail loan book of non-banking financial companies (NBFCs) is likely to grow at 19-21 per cent in the current fiscal year,

According to a recent report, Retail loan book of non-banking financial companies (NBFCs) is likely to grow at 19-21 per cent in the current fiscal year.

The report adds that SME credit is expected to grow at 23-25 per cent in FY19, according to Icra, driven by sizeable unmet demand, increased working capital requirement post GST implementation and limited credit availability from banks.

Meanwhile, addressing the Rajya Sabha yesterday, Rajya Sabha MP Narender Jadhav has said that Alibaba has applied for NBFC license in India through Paytm where it has a majority stake.

He said “Through the NBFC route, the Chinese MNC could possibly capture a large chunk of our domestic lending market by resorting to predatory pricing and capital dumping.”

The parliamentarian further added, “If Chinese MNCs are allowed to dominate the Indian financial services sector they will gain access to private and financial data of millions of individuals and corporates. This could inevitably expose India to a serious geo-political risk and make our country vulnerable to external influence thereby compromising national security… The government of India and RBI must consider taking immediate action before its too late.” (KNN Bureau)