Mumbai, Aug. 7 -- A Reserve Bank of India (RBI) proposal to bar non-bank financiers from issuing revolving credit products has investors running for cover, with shares of Bajaj Finance Ltd tanking over 5% on Friday.

The banking regulator on Thursday proposed that non-banking financial companies (NBFCs) be allowed to offer only term loans unless they hold a licence to issue credit cards. Under the November 2025 norms, NBFCs require RBI approval and a minimum net owned fund of Rs.100 crore to issue credit cards.

RBI defines revolving credit as a credit facility that does not meet the definition of a term loan. A term loan, according to the central bank, refers to credit with a fixed principal amount, disbursed in one or more instalments a...