Accordingly, based on the recommendations of the Shah Committee, the RBI Act was amended in January 1997 to provide a comprehensive legislative framework for regulation of NBFCs by effecting changes in the provisions contained in Chapter III-B and Chapter V of the Act and vested more powers with the RBI.
The measures are mutually reinforcing, and all are necessary. 4  See A. Haldane, “The Contribution of the Financial Sector – Miracle or Mirage?” Speech delivered at the Future of Finance Conference, London, 14 July 2010. 5  It was not just a question of misleading data on profitability. The basic shortcoming of financial growth accounting also plagued compensation structures.