Reserve Bank of India (RBI) governor Sanjay Malhotra on Thursday asked non-banking financial companies (NBFCs) to ensure fair treatment of customers and put in place an efficient mechanism for swift resolution of grievances. In a meeting with the MDs and CEOs of select NBFCs, the governor stressed upon balancing growth aspirations with sound practices for ensuring inclusive development, customer protection and financial stability.
The meeting was also attended by deputy governors M Rajeshwar Rao, T Rabi Sankar and Swaminathan J, along with EDs-in-charge of regulation, supervision and financial inclusion.
Representatives from industry bodies like the Microfinance Institutions Network (MFIN), SaDhan and Finance Industry Development Council (FIDC) were also present. The participants shared their feedback on the sector, various industry-level initiatives and their expectations from the central bank.
The sector requested the need for improved access to liquidity and a refinance window facility, said sources. They also discussed the request to allow NBFCs to accept public deposits as it will help in lowering the cost of funds for them.
Representatives from the microfinance sector expressed concerns regarding recent regulatory changes in Karnataka, where stricter rules on collections by microfinance institutions have been implemented.
Malhotra underscored the role played by NBFCs in credit intermediation, particularly in making credit available for small businesses and niche segments, RBI said in a statement.
The governor asked the NBFCs to further their contribution towards financial inclusion, urged them to become part of unified lending interface (ULI) being put in place by the RBI.
The meeting was a part of the central bank’s series of engagement with the boards and senior management of its regulated entities. The previous such meeting with select NBFCs was held on August 25, 2023.