It is extremely critical that appropriate filtering mechanisms are in place to allow only the genuine and able promoters to start the business of NBFCs. After all, by issuing Certificate of Registration to new NBFCs, we provide them with the regulatory mandate to access public funds multiple times their net worth.
While the transition to alternative interest rate benchmarks is still somewhat uncertain, given how resolute regulators and policymakers are about the need for reform, and considering the steps they have already taken to give effect to that, I can comfortably predict that the future of a new or reformed set of benchmarks will come soon enough.