The Reserve Bank of India (RBI) Governor D. Subbarao on Wednesday said that deposit taking should eventually be restricted only to banks which were tightly regulated and not by non-banking finance companies (NBFCs).

“Deposit collection by non-banking companies should be gradually minimised, and eventually eliminated. Towards this endeavour, the Reserve Bank has been quite restrictive in authorising NBFCs to collect deposits,” said Dr. Subbarao while addressing the 7th International Banking & Finance Conference 2013 organised by the Indian Merchants’ Chamber (IMC) here.

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