It has suggested to ease ECB norms with a higher limit for investment grade-rated companies equivalent to sovereign rating up to maybe USD 1,500 million from the current uniform limit of USD 750 million for all NBFCs.
It has also asked for relaxation of end-use norms of external commercial borrowings (ECBs) for HFCs to facilitate credit flow to the entire housing finance sector.
Currently, end-use is limited to affordable housing, the chamber said in a statement.
Unlike banks, it said these types of companies do not have the repo window facility to borrow in times of need.
NBFCs and HFCs have played a complementary role to banks in supplying credit to the underserved segments of t CII logo he economy, it said.
Citing RBI data, it said that for 2018-19, the share of credit from banks, NBFCs and HFCs was in the ratio of 70:30.
“NBFCs and HFCs are important source of financing and will play a key role in taking the Indian economy to USD 5 trillion,” it added.