Key Takeaways from Swaminathan J’s Address
- NBFCs Should Not Exceed Risk Absorption Capacity:
- Risk-taking should be prudent and well-planned.
- Lending and recovery must be fair and ethical.
- Call for Strong Grievance Redress Mechanism:
- Ensuring transparency and customer protection in lending and recovery.
- Expectations from Auditors:
- Maintain audit rigor.
- Uphold objectivity, transparency, and ethics in financial reporting.
- Part of RBI’s Supervisory Engagements:
- Ongoing dialogues with regulated entities to strengthen governance and compliance.
RBI is reinforcing risk management discipline among NBFCs while pushing for fair lending practices and strong audit standards. This aligns with the broader goal of ensuring financial stability and consumer protection in India’s lending ecosystem.
