The Reserve Bank of India (RBI) Governor held a meeting on February 13, 2025, with Managing Directors and Chief Executive Officers of select Non-Banking Financial Companies (NBFCs) in Mumbai. This meeting included leaders from Government NBFCs, Housing Finance Companies, and Micro-Finance Institutions, collectively representing nearly 50% of the total NBFC sector assets. Representatives from Self-Regulatory Organizations (SROs), Sa-Dhan, Micro Finance Institutions Network (MFIN), and the Finance Industry Development Council (FIDC) were also present.
The discussion focused on the critical role of NBFCs in credit intermediation, particularly for small businesses and niche segments. The Governor emphasized the importance of balancing growth aspirations with sound financial practices to ensure financial stability and inclusive development. He also highlighted the need for robust customer protection frameworks and effective grievance redress mechanisms.
One of the key points of discussion was the implementation of the Unified Lending Interface (ULI), a system being introduced by the RBI to streamline lending processes. The Governor urged NBFCs to actively participate in this initiative to enhance financial inclusion.
The meeting also included an interactive session where industry leaders shared their perspectives on the sector’s challenges, ongoing initiatives, and expectations from the central bank. RBI Deputy Governors M. Rajeshwar Rao, T. Rabi Sankar, and Swaminathan J., along with Executive Directors overseeing regulation, supervision, and financial inclusion, attended the meeting.
