Closely monitor asset quality, RBI Governor tells NBFC chiefs

Reserve Bank of India (RBI) Governor Sanjay Malhotra, during his meeting with Managing Directors & Chief Executive Officers of select Non-Banking Finance Companies (NBFCs)  on Monday, underlined the need for sound underwriting standards and close monitoring of asset quality by the sector. 

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.

Heads of Government NBFCs, Housing Finance Companies (HFCs) and Microfinance Institutions also participated in the meeting. 

The participating entities together account for about 53% 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 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 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.

Meanwhile, the first meeting of the Payments Regulatory Board (PRB) was held on Monday in Mumbai under the Chairmanship of Governor Malhotra.  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 RBI said in a statement. 

The draft Payments Vision 2028 was presented, and Members gave strategic guidance to ensure the continued development of India’s payment ecosystem, it said.

A presentation on the major findings of the Survey on Digital Payments, recently conducted by RBI, was also made. Members of PRB S. Krishnan, Secretary, Ministry of Electronics and Information Technology, Nagaraju Maddirala, Secretary, Department of Financial Services, Aruna Sundararajan, IAS (Retd.),T. Rabi Sankar, Deputy Governor, and Vivek Deep, Executive Director, attended the meeting.