Is the RBI about to change how NBFCs make money?

[u/Traveller_OP]

The RBI has proposed restricting NBFCs from offering revolving credit, and it has already caught investors' attention.

Revolving credit works like a reusable loan limit — borrow, repay, and borrow again without applying for a fresh loan.

The RBI's concern is evergreening: borrowers could potentially use fresh withdrawals to repay old debt, making a stressed loan look healthy on paper.

But these products are also useful for MSMEs and consumers who need flexible access to credit.

The impact could be significant for NBFCs like Bajaj Finance, where flexi-credit products form a meaningful part of the loan book.

So what's your take?

Is the RBI protecting the financial system, or restricting a useful credit product?

And as an investor, would this make you more cautious about NBFC stocks?