RBI Hasn’t Gone Soft on NBFCs: R. Gandhi Says Foreign Deals Still Face Full “Fit and Proper” Gauntlet

RBI is not softening its stance on NBFC regulation or foreign ownership, and large stake purchases by global players like MUFG in

will continue to face the same rigorous “fit and proper” scrutiny as always, former Deputy Governor R. Gandhi has clarified. He emphasises that what has changed is the seriousness of foreign investors in actually filing applications, not the central bank’s due‑diligence framework or approval standards. According to Gandhi, there will be no shortcuts or fast‑tracking for cross‑border deals in NBFCs or banks: the RBI will keep vetting investor credentials, sources of funds, business history and jurisdictional risks under its established processes. Investments from FATF non‑compliant jurisdictions, in particular, remain constrained by quantitative limits and will not be treated on par with those from compliant countries. The broader message is that India’s growing attractiveness as a financial market is drawing higher‑quality foreign capital, but regulatory safeguards and ownership caps are not being relaxed in response. For investors reading recent big‑ticket NBFC deals as a sign of regulatory dilution, Gandhi’s comments are a reminder that RBI’s guardrails around governance, transparency and control remain firmly in place. Source: The Economic Times No Recommendations