The Reserve Bank of India's (RBI) proposed restrictions on revolving credit facilities offered by non-banking financial companies (NBFCs) may increase operational challenges for lenders, reduce their returns and raise costs for borrowers, Kotak Institutional Equities said in a report.

The Reserve Bank of India's (RBI) proposed restrictions on revolving credit facilities offered by non-banking financial companies (NBFCs) may increase operational challenges for…

Kotak warns RBI's new rate framework may limit HFC pricing flexibility while enhancing bank rate transmission to NBFCs.