Mumbai: RBI Governor Sanjay Malhotra on Monday underlined the need for sound underwriting standards and close monitoring of asset quality by NBFCs.
At a meeting held here with the Managing Directors and CEOs of select non-banking financial companies (NBFCs), including government NBFCs, housing finance companies (HFCs), and microfinance institutions, the RBI Governor further emphasised the criticality of customer-centricity, ethical conduct, and responsible lending.
He also highlighted the need for prompt grievance redressal of customers for preserving confidence in the NBFC sector and supporting its orderly and sustainable development.
The participating entities together account for about 53 per cent of NBFC sector assets. Industry participation included the representatives of Self-Regulatory Organisations, Sa-Dhan, the Micro Finance Institutions Network and the Finance Industry Development Council, according to an RBI statement issued after the conference.
In his opening remarks, the Governor highlighted the important role of NBFCs and HFCs in facilitating credit flow. During the discussion, participants shared feedback on policy issues and operational matters relating to the NBFC sector.
The meeting was also attended by Deputy Governors T. Rabi Sankar, Swaminathan J., Dr Poonam Gupta, and S. C. Murmu, and the MD & CEO of the National Housing Bank, apart from other senior officers of the Reserve Bank.
In a related development, the first meeting of the Payments Regulatory Board (PRB) on Monday was held here on Monday under the chairmanship of the RBI Governor. The PRB was constituted consequent to an amendment in the Payment and Settlement Systems Act, 2007, which came into effect on May 9, 2025.
The Board reviewed the functions of the Department of Payment and Settlement Systems and current focus areas covering both domestic and global payment systems. The draft Payments Vision 2028 was presented, and Members gave strategic guidance to ensure the continued development of India’s payment ecosystem. A presentation on the major findings of the Survey on Digital Payments, recently conducted by RBI, was also made, the RBI statement said.
(IANS)
