Indian financial firms fall as RBI draft proposal to curb flexible NBFC loans

Bajaj Finserv

07/08/2026 08:00

** India's financial-services index .NIFTYFIN falls 1.2%, dragging Nifty 50 .NSEI, which slips 0.3%, as investors assess the Reserve Bank of India's draft rules for non-bank lenders' credit facilities 
** Bajaj Finance BJFN.NS drops 5.1%, parent Bajaj Finserv BJFS.NS loses 4.2% and Cholamandalam Investment CHLA.NS declines 2.9%, leading the sector's retreat 
** RBI's proposal could effectively bar NBFCs from offering revolving-credit products unless they are authorized to issue credit cards 
** Revolving credit is any facility that is not a term loan with a predetermined amortization schedule 
** According to the draft, lenders cannot reinstate a sanctioned limit after borrowers repay part or all of the principal 
** Morgan Stanley says flexi loans and overdraft products across corporate, MSME and unsecured personal-loan segments face the greatest exposure
** Brokerage expects NBFCs to seek redesigns that preserve customer convenience and product economics 
** Diversified lenders may weather the change better by steering customers toward alternatives, including gold loans, says Morgan Stanley 


 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))