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India central financial institution very likely to propose stricter guidelines for shadow banking companies: resources

NEW DELHI/MUMBAI (Reuters) – India’s central lender is possible to propose tightening principles on “shadow banks” in a bid to fortify solvency and sustainability of a sector that has been displaying symptoms of tension in modern a long time, two sources said.

FILE Photograph: A Reserve Lender of India (RBI) brand is viewed at the gate of its business office in New Delhi, India, November 9, 2018. REUTERS/Altaf Hussain/File Photo

The Reserve Bank of India has been making an attempt to tighten regulatory norms on the sector given that Infrastructure Leasing & Economic Solutions, the greatest nonbank economic corporation, went bankrupt in 2018, and Dewan Housing Finance Corp and Altico Capital defaulted on payments in 2019.

The RBI is expected to set out proposals in a dialogue paper up coming 7 days, recommending that even bigger shadow banks manage a statutory liquidity ratio, the resources reported.

The officials requested not