Archive · 11 Aug 2026
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.
Tata Capital's revolving credit exposure is below 5 per cent, Managing Director and CEO Rajiv Sabharwal said on Tuesday.
On August 6, the Reserve Bank of India (RBI) proposed that non-banking finance companies (NBFCs) should not offer revolving credit products and should instead offer credit structured like term loans.
Tata Capital will submit its feedback to the regulator on the draft norms and is still collating data to determine the parameters of its response.
Sabharwal, speaking on the sidelines of the FIBAC 2026 conference in Mumbai, said it was too early to assess the final impact and there was "not much" to be concerned about at this stage.
The restriction would not apply to NBFCs authorised by the RBI to issue credit cards, and feedback on the draft norms is due by August 28.
- Who
- Tata Capital Managing Director and CEO Rajiv Sabharwal and the Reserve Bank of India (RBI)
- What
- The RBI proposed draft norms restricting NBFCs from offering revolving credit products, and Tata Capital said its revolving credit exposure is below 5 per cent while it prepares feedback
- When
- The RBI draft norms were proposed on August 6, 2026; Sabharwal commented on Tuesday, August 11, 2026; feedback is due by August 28
- Where
- Mumbai, on the sidelines of the FIBAC 2026 conference
- Why
- The RBI proposed the norms to regulate revolving credit products offered by NBFCs, and Tata Capital is reviewing the draft before submitting its feedback
- Company
- Tata Capital (non-bank lender)
- Executive
- Rajiv Sabharwal, Managing Director and CEO
- Revolving credit exposure
- Below 5 per cent
- Regulator
- Reserve Bank of India (RBI)
- Draft norms proposed
- August 6, 2026
- Feedback deadline
- August 28, 2026
- Credit card exemption
- NBFCs authorised by the RBI to issue credit cards