India’s central bank wants to stop most non-bank lenders from offering a form of credit that lets borrowers keep borrowing after they repay. In effect, it has decided that “revolving credit” is a product for banks. Everyone else, no matter how large or well-capitalised, must stop.

On 6 August, the Reserve Bank of India (RBI) proposedRBIDraft Reserve Bank of India Non Banking Financial Companies Credit Facilities Amendment Directions 2026 this in plain terms. Its draft directions, open for public comments until 28 August, would........

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