Non banking financial companies (NBFCs) are regaining the spotlight as the Central Board of Direct Taxes (CBDT) has exempted certain cash transactions from the purview of Rs 2 lakh restriction. In an interview to CNBC-TV18, TT Srinivasaraghavan, MD of Sundaram Finance spoke about the same.

Non banking financial companies (NBFCs) are regaining the spotlight as the Central Board of Direct Taxes (CBDT) has exempted certain cash transactions from the purview of Rs 2 lakh restriction.

In an interview to CNBC-TV18, TT Srinivasaraghavan, MD of Sundaram Finance spoke about the same and latest happenings in the company.

He said that misinterpretation of Rs 2 lakh caused a lot of hassles especially for the smaller borrowers.

"I would say the blame largely probably lay with self-appointed experts within the industry because the way people interpreted this to say that Rs 2 lakh would be for the whole financial year and in more extreme case would be applicable through the entire life of the transaction, was little overboard," said Srinivasaraghavan.

The wording of the circular talks about an event, an occasion or a transaction, he added.

He further said that CBDT clarification is a positive thing for small borrowers.

On business front, he said Q1 of FY18 collections were at the same level of Q4 FY17 levels.

He added that April and May vehicle sales affected due to BS-IV transition.

According to him, Q2 of FY18 should see customers coming back to their day-to-day businesses.