RBI Governor Advocates Strong Underwriting Standards for NBFCs

Reserve Bank of India Governor Sanjay Malhotra emphasized the significance of robust underwriting and asset monitoring for non-banking financial companies (NBFCs) during a meeting with senior officials. Key topics included the importance of ethical practices, customer-centric approaches, and grievance redressal in maintaining public trust and a sustainable sector.

Reserve Bank of India Governor Sanjay Malhotra emphasized the need for strong underwriting standards and careful monitoring of asset quality during a meeting with senior officials from select non-banking financial companies (NBFCs) in India.

This gathering was part of the RBI's ongoing interactions with regulated entities, where the Governor met with the MDs and CEOs of prominent NBFCs, including government-backed housing finance companies and microfinance institutions.

Malhotra stressed the critical role of these institutions in credit facilitation while advocating for ethical practices, customer-focused approaches, and prompt grievance redressal to ensure public confidence and sustainable sector growth, according to an RBI statement.

(With inputs from agencies.)