The Reserve Bank of India (RBI) has flagged concerns about the aggressive growth strategies of some non-banking financial companies (NBFCs) without proper risk management. During his speech on October 9, 2024, Governor Shaktikanta Das warned that high levels of indebtedness and the pursuit of excessive returns could lead to financial stability risks for NBFCs.
The RBI Governor stressed the importance of NBFCs adhering to sustainable business goals, especially as some segments like microfinance are witnessing higher stress. The central bank reiterated its commitment to closely monitoring this sector and intervening as necessary to maintain financial stability.
Disclaimer: This article is based on the RBI’s official Monetary Policy Statement.
