The Reserve Bank of India Governor Sanjay Malhotra yesterday held a meeting in Mumbai with the Managing Directors and Chief Executive Officers (MDs & CEOs) of select Non-Banking Financial Companies (NBFCs), including Government NBFCs, Housing Finance Companies (HFCs) and Microfinance Institutions. 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. The meeting was also attended by Deputy Governors apart from other senior officers of the Reserve Bank.

The RBI Governor highlighted the important role of NBFCs and HFCs in facilitating credit flow. He underlined the need for sound underwriting standards and close monitoring of asset quality. He further emphasised the criticality of customer-centricity, ethical conduct and responsible lending along with prompt grievance redressal for preserving confidence in the sector and supporting its orderly and sustainable development. During the discussion, participants shared feedback on policy issues and operational matters relating to the NBFC sector.

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