RBI asks NBFCs, HFCs to improve standards

MUMBAI: Reserve Bank of India governor Sanjay Malhotra on Monday urged non-banking financial companies (NBFCs) and housing finance companies (HFCs) to strengthen underwriting standards and uphold customer-centric practices to ensure sustainable growth and confidence in the sector. Governor conveyed this message at meeting with managing directors and chief executive officers of select NBFCs, HFCs and microfinance institutions in Mumbai. The meeting, the first such interaction with NBFCs since February 2025, included government-owned NBFCs and institutions that together account for about 53% of the sector’s assets. Industry bodies such as Sa-Dhan, the Micro Finance Institutions Network and the Finance Industry Development Council were also represented.