New Delhi, September 26 Reserve Bank of India (RBI) Deputy Governor Shirish Chandra Murmu has listed five key areas for the sustainable growth of the NBFC sector. He said NBFCs are changing from alternative lenders into specialised financial partners as the sector faces new challenges and new opportunities.Key HighlightsMurmu listed five areas for sustainable NBFC growth.The areas include governance, liquidity and credit risk.Customer protection and fair conduct are also key.Digital growth must come with strong cyber safety.Five Areas for NBFC GrowthThe first area is governance and culture. Murmu said boards and senior managers must build a strong culture of compliance and ethics. Good governance is important as NBFCs grow bigger.The second area is liquidity management. NBFCs need to have enough money to meet their needs. Murmu said firms should use different sources of funding. This can help reduce risks when market conditions change. He also highlighted the role of a strong corporate bond market and securitisation.The third area is asset quality and credit risk. Faster lending can also bring more risk. Murmu said NBFCs should use stress tests and early warning systems. Artificial intelligence and machine learning can also help find signs of borrower stress.“Growth must never come at the cost of underwriting standards.”The fourth area is customer protection and fair conduct. Murmu said customer trust is important for long-term growth. NBFCs must follow responsible lending rules and give proper help to customers with complaints.The fifth area is digital transformation and cyber resilience. NBFCs are using more technology for lending and customer service. Digital tools can make credit faster and easier. But firms must also protect their systems from cyber risks.NBFC Role Is Changing Murmu said NBFCs now play a bigger role in India's credit system. Their work includes supply-chain finance, infrastructure debt, affordable housing and vehicle finance."He also noted that NBFC credit has reached about 16.7 per cent of India's nominal GDP, up from 15.9 per cent a year earlier. NBFC credit is also about 27 per cent of the credit given by scheduled commercial banks."The RBI has also taken steps to support responsible growth while keeping financial stability in focus. Murmu said technology and new lending methods can help reach more people, but growth must be supported by strong risk controls.Also Read : Banks Open on Sunday September 27: RBI Approves Full Operations Ahead of Bank Strike
