ENA Sectors 2018-10-25 10:15:55 <p><strong>Mumbai, Oct 25 (KNN)</strong> In the last four days, the Reserve Bank of India (RBI) has cancelled the certificates of as many as 121 Non-Banking Financial Companies (NBFCs).</p> <p>On October 22 certificates of 30 NBFCs were cancelled, while on October 23, 24 and 25 certificates of 31, 30 and 30 NBFCs were cancelled respectively.</p> <p>The move comes days after RBI eased liquidity norms for banks in order to release additional funding for NBFCs.</p> <p>NBFCs have been under pressure recently due to fears of a liquidity crisis, high valuations and asset liability mismatches</p> <p>The crisis triggered after Infrastructure Leasing &amp; Financial Services Ltd (IL&amp;FS) group defaulted on the payments.</p> <p>RBI had allowed banks to allocate up to 15% of their lending to NBFCs that do not finance infrastructure projects against 10% earlier. The banks were permitted to use government securities equal to the incremental credit disbursed by them to NBFCs to meet liquidity coverage ratio requirements.</p> <p>Meanwhile, it is expected that the RBI in its ongoing board meeting in Mumbai will touch upon the liquidity squeeze gripping the NBFCs.</p> 21152 https://knnindia.co.in/news/newsdetails/sectors/rbi-cancels-certificates-on-121-nbfcs-since-october-22 2018-10-25 10:15:55 knnindia.co.in