The RBI, last week, issued a prompt corrective action (PCA) framework for non-banking financial companies (NBFCs). It follows the central bank's announcement of a new framework for scheduled commercial banks (SCBs) announced last month.

       There was an incongruity in the classification of non-performing assets (NPAs), which the RBI has addressed with the new framework. Although NBFC lending has still not reached proportions achieved by banks, it has risen over the last few years. As a proportion of gross domestic product (GDP), non-food credit of NBFCs increased from 8.6 per cent in ...