Tata Capital CEO Unconcerned by Proposed NBFC Revolving Credit Norms

In India, a big money rule-maker called the Reserve Bank of India, or RBI, recently said that finance companies that lend money should stop offering a special kind of loan called "revolving credit."

Revolving credit is like a credit card: you can borrow money, pay it back, and borrow it again up to a set limit.

The RBI wants these companies to offer regular loans instead, where you get the money once and pay it back over time.

A company called Tata Capital lends money to people and businesses, and its boss, Rajiv Sabharwal, said his company does not have very much of this revolving credit.

He said it makes up less than five percent of their lending.

He also said the company is not too worried about the new rules and will tell the RBI what it thinks.

The RBI is asking everyone to send their thoughts by August 28.

Mr. Sabharwal said it is too early to know exactly what will happen.

Companies that are allowed to issue credit cards can keep doing so.

For now, Tata Capital just wants to keep offering a full range of loan products to its customers.