New Delhi, Feb. 27 -- The Reserve Bank of India (RBI) has adopted a more consultative approach under its new Governor, as reflected in its recent decision to roll back the increase in risk weightage on loans to Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs), according to a report by Nuvama Research.

The report pointed out that, at a media interaction on February 7 following the monetary policy announcement, the RBI Governor and Deputy Governor had stated that the central bank was unlikely to relax risk weights on NBFC loans due to interconnected risks.

However, despite this stance, the RBI later eased the risk weights on bank lending to NBFCs. The report said that this change was likely to be influenced by ...