Reserve Bank Governor Sanjay Malhotra met senior executives of major non-banking financial companies (NBFCs) on Monday to discuss key issues facing the sector, stressing the need for strong lending standards and close monitoring of loan quality.The meeting was attended by heads of government-owned NBFCs, housing finance companies and microfinance institutions, which account for more than half of India’s NBFC sector by assets.Malhotra talked about the role NBFCs play in providing credit to households and businesses and urged them to follow prudent lending practices and closely track repayments, as reported by PTI. He said sound underwriting standards and strict monitoring of asset quality were critical for the sector’s stability.The governor also called for better customer service and ethics in business operations, saying these are needed for establishing trust and facilitating sustainable growth. He also touched on responsible lending and resolving customers’ complaints in time.Several senior RBI officials, including deputy governors T Rabi Sankar, Swaminathan J, Poonam Gupta and S C Murmu, attended the meeting, along with the chief executive of the National Housing Bank. A similar meeting with NBFCs was held earlier on February 13 last year.
