It was probably the third time in the last nine months that, after its monetary policy meeting, the RBI had a word of caution for NBFCs. Basically, they were warned to set their houses in order, and not resort to aggressive lending practices. The key message: NBFCs should keep an eye on how the money they lend is being used. The RBI’s concern stems from the fact that too much leverage money is coming into the equity markets – especially in the futures and options (F&O) segment. Should this warning be taken as a sign that more tightening is coming? Or is there a different way to look at it? Perhaps there is – at least in the medium term.
