Mumbai, Sept. 2 -- Non-banks have sought clarity from the Reserve Bank of India (RBI) on the definition of revolving credit and exemptions for certain micro, small, and medium enterprise (MSME)-focused products, including supply-chain finance and invoice discounting, after the central bank proposed barring them from issuing such facilities.

Some have pleaded with the regulator to allow revolving credit facilities, albeit with tighter underwriting and disclosures to address any concerns, or issue a new framework for such loan products.

"RBI's issue may not be with the product itself but probably a visibility concern," said Jatinder Handoo, chief executive of industry body United Fintech Forum (UFF). "We need to find a way to work closely...