RBI Governor Sanjay Malhotra stressed the importance of strong underwriting standards and diligent asset quality monitoring by NBFCs during a meeting in Mumbai. He highlighted the significance of customer-centricity, ethical behavior, and responsible lending among non-banking financial companies, including government NBFCs, HFCs, and microfinance institutions. Prompt grievance redressal for customers was also underscored to maintain trust in the NBFC sector and ensure its sustainable growth.
The entities present at the meeting represent around 53% of the NBFC sector assets. Industry stakeholders, including Self-Regulatory Organisations, Sa-Dhan, the Micro Finance Institutions Network, and the Finance Industry Development Council, participated in the discussions, sharing insights on policy issues and operational concerns related to the NBFC sector.
In addition to the Governor, Deputy Governors and senior officials of the Reserve Bank, including T. Rabi Sankar, Swaminathan J., Dr Poonam Gupta, and S. C. Murmu, attended the meeting. The National Housing Bank’s MD & CEO was also present to discuss the pivotal role of NBFCs and HFCs in facilitating credit flow.
Furthermore, the inaugural meeting of the Payments Regulatory Board (PRB) was convened under the leadership of the RBI Governor. The PRB, established following an amendment in the Payment and Settlement Systems Act, 2007, reviewed the functions of the Payment and Settlement Systems Department. Discussions encompassed domestic and global payment systems, with strategic guidance provided for India’s payment ecosystem development. The session included a presentation on the key findings of the RBI’s recent Survey on Digital Payments.
