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Below is quote on RBI's Monetary Policy Meeting expectations and impact on NBFC by Rahul Chander, MD & CEO of Livfin 

"The rate increase by the MPC is in line with expectations. There were however some that expected a slightly lower hike, given that the projected annual GDP growth rate has declined from that projected at the beginning of the year and the hope that the RBI would now shift its focus a bit more towards that aspect. However, with India showing resilience in weathering the current global slowdown as compared to most of the rest of the world, the RBI has perhaps taken the view that the fight against inflation at this time needs more focus, given that it is still much higher than RBIs target rate. The NBFC sector has already been negatively impacted with the rate increase cycle during the year, and the near term outlook for NBFCs will be further negatively impacted with this hike.  Cost of borrowings will increase further, especially given that a majority of the funding of NBFCs now comes from Banks. This will obviously have a negative impact on their growth and affect downstream borrowers (largely the MSME sector), both in terms of rates as well as availability of credit."

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