Mumbai, Feb 13 (UNI) RBI Governor Sanjay Malhotra on Thursday held a meeting with the Managing Directors and CEOs of select Non-Banking Financial Companies (NBFCs) across all layers, including Government NBFCs, Housing Finance Companies and Micro-Finance Institutions and stressed upon balancing growth aspirations with sound practices for ensuring inclusive development, customer protection and financial stability.
These NBFCs constitute nearly 50 percent of the total assets of the NBFC sector. Representatives from Self-Regulatory Organizations (SROs), Sa-Dhan and Micro Finance Institutions Network (MFIN), as well as from Finance Industry Development Council (FIDC) also participated in the meeting.
The meeting was a part of the Reserve Bank’s series of engagement with the Boards and Senior Management of its Regulated Entities. The previous such meeting with select NBFCs was held in August, 2023.
The RBI Governor, in his opening remarks, underscored the significant role played by NBFCs in credit intermediation, particularly in making credit available for small businesses and niche segments.
Highlighting the collaborative efforts required between the Reserve Bank and the NBFCs, he stressed upon balancing growth aspirations with sound practices for ensuring inclusive development, customer protection and financial stability.
Malhotra also underscored the significance of ensuring fair treatment to customers and putting in place a prompt grievance redress mechanism. Urging the NBFCs to further their contribution towards financial inclusion, the Governor requested them to become part of Unified Lending Interface (ULI) being put in place by the Reserve Bank.
The meeting was also attended by Deputy Governors M. Rajeshwar Rao, T. Rabi Sankar and Swaminathan J., along with Executive Directors-in-Charge of Regulation, Supervision and Financial Inclusion, RBI said in a statement.
