In their first meeting with the new Reserve Bank of India (RBI) Governor Sanjay Malhotra, heads of non-banking finance companies (NBFCs) have requested liquidity support in the form of a dedicated re-finance window for the sector, sources say.
The NBFC heads also re-iterated the long-pending request to allow large sized NBFCs to accept public deposits. The meeting was attended by large NBFC heads from Bajaj Finance, Tata Capital, Shriram Finance, Muthoot Finance, among others. Representatives of microfinance institutions self-regulatory organisations (SRO), Sa-Dhan and MFIN were also present in the meeting.
The MFI SROs separately drew the regulator’s attention towards Karnataka state government’s ‘The Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025’, which could impact borrowers and lending institutions on ground, a source said.
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The Governor, in today’s meeting, stressed upon balancing growth aspirations with sound practices to ensure customer protection and financial stability. He also underscored the significance of ensuring fair treatment to customers and putting in place a prompt grievance redressal mechanism. He also urged the NBFCs to become a part of RBI’s ambitious Unified Lending Interface (ULI) program.
The RBI had last held such a meeting with select NBFCs on August 25, 2023.