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Relief for small loan-takers by banks should be extended to NBFCs also

It refers to central government directing banks not to be tough in dealing with defaulters of bank-loans of upto rupees two crores. But as usual, Non-Banking-Financial-Companies NBFCs are not covered through any such relief. Only recently, compulsory linking of repo-rate with interest-rate for banks was not made applicable by Reserve Bank of India RBI for NBFCs. Likewise complete waiver of foreclosure charges on pre-payment of bank-loans was also not applicable to NBFCs.

Since NBFCs act like banks that too funded by public-sector banks, all such guidelines should be uniformly applicable to NBFCs. Also since NBFCs act like banking companies for giving loans, provision of Tax-Deducted-At-Source TDS on interest-portion of EMIs must not be applicable for NBFCs, where most loan-takers do not claim TDS from NBFCs which becomes profit for NBFCs. Till such a provision is made, NBFCs should be directed to deposit unclaimed TDS in government-account.

 

MADHU AGRAWAL

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