New Delhi, Aug. 29 -- The Finance Industry Development Council (FIDC), an industry body representing non-banking financial companies (NBFCs), has urged the Reserve Bank of India (RBI) to reconsider its proposed blanket restriction on revolving credit products.

They warned that the move could affect borrowers, particularly micro, small and medium enterprises (MSMEs).

FIDC submitted its response on August 27 to the RBI's draft 2026 directions, which seek to restrict NBFCs from offering revolving credit facilities, reported Business Standard.

The draft defines revolving credit as fund-based facilities that do not meet the criteria for term loans, which have fixed principal, predetermined repayment schedules and no restoration of the sanct...