When a lender holds cash collateral against potential loan losses but still must provision for those same losses, something feels off. For months, NBFCs faced exactly this scenario with Default Loss Guarantees in digital lending arrangements. On February 13, 2026, RBI issued a notice  that resolved the confusion. NBFCs may now factor DLG into Expected Credit Loss provisioning. This brings regulatory guidance in line with accounting standards and economic reality. The change m

Introduction The 2026 Budget announced the merger of Power Finance Corporation and Rural Electrification Corporation. This would be the first step in improving scale and efficiency in public sector NBFCs. A High Level Committee on Banking for Viksit Bharat will be formed alongside. These signal dual shifts that will reshape how lenders compete. Budget 2026 also commits ₹12.2 lakh crore to public capex in FY27. It introduces market makers for corporate bonds. Municipal bonds a

Introduction India's Budget 2026 introduces the biggest structural change to MSME lending since MUDRA. The CGTMSE credit guarantee scheme now extends to invoice discounting through TReDS platforms. This creates an infrastructure-backed option to standard balance-sheet lending .  The shift arrives as manufacturing expands 8.4% in H1 FY26 , reflecting strong capacity usage and resilient demand. Reform completion stands at 76% of planned measures. The Budget uses a dual approach

If you missed Part 1 of the FSR 2025 series, you can read it  here . Introduction The RBI's December 2025 Financial Stability Report  delivered both validation and a strategic signal for the NBFC sector. Stress tests confirmed strong capital positions at 22.8% CRAR, substantially above the 15% regulatory minimum. The system demonstrated clear resilience under severe stress scenarios. But the FSR also revealed something more strategic for the sector. The stress testing methods

India's Loan Against Property (LAP) market will reach USD 2.8 trillion by 2034 , growing at 13% each year. The opportunity is large. But operating challenges limit how fast lenders can scale this business. Unlike home loans that finance a specific purchase with standard workflows, LAP serves many needs. It funds business growth, debt payoff, education, and medical costs. Lenders can accept residential, commercial, or industrial properties as security. This flexibility creates