Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday (October 9, 2024) warned of action against those non-banking financial companies (NBFCs) who are pursuing unsustainable practices to push growth. In a strongly-worded statement, while announcing the bi-monthly policy review, Mr. Das asked such NBFCs to be sincere, fair and follow sustainable practices. “The NBFC segment has registered an “impressive growth” over the last few years,” Mr. Das said, acknowledging that such lenders have helped the policy objective of financial inclusion. However, some NBFCs are pursuing growth aggressively without building up sustainable business practices and risk management frameworks, he rued. "An imprudent 'growth at any cost' approach would be counter productive for their own health," the Governor said.

Source: The Hindu October 09, 2024 21:03 UTC