Those banks which had a higher capital adequacy ratio of 125% of the regulatory minimum were allowed a higher limit of 300% of networth. In addition, prudential limits have also been placed on the extent to which banks may access the inter-bank call money market both as a lender and as a borrower.
Financial regulation of systemically important NBFCs and banks’ relationship with them The RBI has been strengthening the regulatory and supervisory framework for non-banking finance companies (NBFCs) since 1997 with the objective of making the NBFC sector vibrant and healthy. The focus was initially on deposit-taking NBFCs.