RBI Governor Calls for Fair Practices in NBFCs

RBI Governor Sanjay Malhotra urged non-banking financial companies to ensure fair customer treatment and implement efficient grievance redressal systems. He emphasized the role of NBFCs in financial inclusion and encouraged collaboration for growth and stability. The meeting sought feedback from the sector's leaders.

RBI Governor Sanjay Malhotra has emphasized the necessity for non-banking financial companies (NBFCs) to prioritize fair treatment of customers and establish swift grievance redressal mechanisms. This development emerged following a meeting with various NBFC leaders, including those from government, housing finance, and micro-finance sectors.

The participants represented NBFCs that account for nearly half of the sector's total assets. Governor Malhotra highlighted the crucial role of these entities in credit facilitation, particularly for small businesses and niche segments. He also stressed the need for balanced growth aligned with robust practices to foster financial inclusion and stability.

The governor urged NBFCs to integrate into the Unified Lending Interface (ULI) to enhance financial inclusivity. Feedback was shared on industry-level initiatives during the interactive session, which included sector leaders and representatives from Self-Regulatory Organizations. This meeting is part of ongoing engagements with the Reserve Bank's regulated entities.

(With inputs from agencies.)