In order to allow additional access to funding for the NBFC sector in the wake of the recent crisis, the Reserve Bank has relaxed the norms for NBFCs to securitise their loan books. In addition, banks have been allowed to provide partial credit enhancement to bonds issued by the systemically important non-deposit taking non-banking financial companies and Housing Finance Companies.
What would challenge the MPC throughout the year was the domestic dilemma – the trade-off between inflation and growth was set to become sharp and the tension between the two so acute that it would eventually impact the voting pattern of the MPC.