Prudential norms Apprehensions have also been expressed that tightening of prudential norms as proposed in the draft regulations may affect the profits of the NBFCs and increase their lending cost. You would observe that changes have been proposed only in areas where there is a heightened risk perception.
Furthermore, since 2009, the MPC has accepted inflation closer to the upper end of the target than it might in different circumstances, so as to support the recovery. In other words, monetary policy has done a great deal to assist growth. But this is not the only message to bear in mind when thinking about the monetary policy stance.