RBI says no to special exposure relaxations for state NBFCs

The Reserve Bank of India has rejected requests from government-owned NBFCs for special exemptions from concentration norms and increases in single counterparty exposure limits. The central bank maintained a principles-based regulatory approach, while allowing limited grandfathering of residual breaches and permitting temporary limit breaches under specific conditions. The move tightens rules for public sector NBFCs and signals no preferential treatment for state-owned entities.