The Reserve Bank of India (RBI) emphasized on sound underwriting practices and careful monitoring of asset quality during a meeting with managing directors and CEOs of select non-banking financial companies (NBFCs) and housing finance companies (HFCs) in Mumbai on Monday.

The session, part of the RBI’s continued engagement with regulated entities, brought together leaders from institutions representing around 53 per cent of the NBFC sector’s assets, highlighting the importance of the discussions to the industry at large.

In his opening address, RBI Governor Sanjay Malhotra stressed the need for strong underwriting standards and close monitoring of asset quality. The Governor also highlighted the critical role played by NBFCs and HFCs in ensuring the flow of credit to the entire economy.

The RBI emphasized the “criticality of customer centricity, ethical conduct and responsible lending along with prompt redressal of claims to preserve confidence in the sector and support its orderly and sustainable development”.

Industry representation at the meeting included self-regulatory organisations, Sa-Dhan, the Micro Finance Institutions Network and the Finance Industry Development Council. Senior officials such as Lieutenant Governors T Rabi Sankar, Swaminathan J, Dr Poonam Gupta and SC Murmu along with the Managing Director and Managing Director of the National Housing Bank also attended the meeting.

The leaders of the participating entities discussed policy issues and operational issues affecting NBFCs. During the discussion, participants shared feedback on policy issues and operational issues related to the NBFC sector.

This meeting follows a similar meeting held on February 13, 2025 to strengthen the RBI’s ongoing dialogue with the sector.