Skip to content
Free updates Login
SSCBankingNABARD / RBI

RBI Deputy Governor’s Advice to NBFCs on Prudent Lending

29 March 20251 min read
BANKING & FINANCERBI DeputyGovernor’s Adviceto NBFCs onPrudent Lending29 March 2025safalsetu.com

Why in the news

Speaking to the sector, RBI Deputy Governor Swaminathan J stressed disciplined risk management among non-banking finance companies (NBFCs).

Key facts

  • NBFCs must not exceed their risk absorption capacity; risk-taking should be prudent and planned.
  • Lending and recovery should be fair and ethical.
  • A robust grievance redress mechanism is needed to protect customers.

Expectations from auditors

  • Keep up audit rigour.
  • Uphold objectivity, transparency and ethics in financial reporting.

Significance

  • The address is part of RBI’s supervisory engagement and dialogue with regulated entities.
  • It supports financial stability and consumer protection in lending.

Exam angle

  • Speaker: Swaminathan J, RBI Deputy Governor.
  • Sector addressed: NBFCs.

Test yourself

1. Which RBI Deputy Governor warned NBFCs about risk management and fair lending?

Swaminathan J delivered the address.

2. What did the RBI Deputy Governor say NBFCs must not exceed?

NBFCs should not exceed their risk absorption capacity.

3. Besides fair lending, what mechanism did the RBI Deputy Governor urge NBFCs to strengthen?

A strong grievance redress mechanism was called for.

This topic is part of Daily Current Affairs 29 March 2025 (16 topics).

All topics of the dayDay quizMarch 2025

Read more