It was, however, realised that the inter-linkages of these NBFCs with the other components of the financial system have grown over the years and their growing presence in various financial markets could, in the absence of regulatory steps lead to risk transfers which could have systemic implications.
This decision is intended to enable the quantitative easing policy to be conducted more smoothly by making it possible for liquidity to be provided with a minimum of hindrance to the process of price formation and efficient allocation of funds in the financial markets.