New Delhi: The non -western financial companies (NBFCS) will be the central point of the Indian path to become a viksit Bharat (developed nation) by 2047, but must follow responsible and transparent credit procedures on Wednesday.
Sitharaman, which focuses on the NBFC 2025 symposium, organized by the Ministry of Finance Services (DFS) in Nový Delhi, said the interest rates must remain reasonable, the reduction of rates must be handed over to the debtors and all fees must be clearly published, without hidden fees or complex conditions.
“Lending should be based on the real needs and capacity of customers’ repayment … Loans should not be aggressively launched or pushed,” she said.
“NBFC recovery procedures must be fair, empathetic and respectful and strictly accorded with the RBI code,” she added.
Certainly, some non -banking financial companies (NBFC) have come under control for deployment of renewal agents who resort to coercive and inhuman methods for collecting personal loans.
In early February, Governor of Reserve Bank of India (RBI) Sanjay Malhotra also urged NBFC to give priority to fair treatments to customers and create robust compensation mechanisms.
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At a meeting with managers and managers of selected NBFCs, Malhotra emphasized the need to balance the ambitions of growth and cautious practices to protect customers’ interests, promoted inclusive development and ensure financial stability, according to reports.
Sitharaman also stressed in its notes on Tuesday that NBFC remains an important part of the financial system with their ability to achieve a large cross -section of the population and diverse geographical area and complement the banking system.
“NBFC has appeared as an important source of loan for segments that were historically underestimated or excluded,” she said.
They meet a number of credit needs and are the first contact point for millions of citizens and small businesses looking for financial strengthening, and appears as a preferred option for a number of insufficient sectors, she added.
Following things, the NBFC sector has shown a strong recovery in the quality and profitability of assets from Pandemia.
The gross non -payable assets (NPA) decreased significantly from 6.4% in March 2021 to 3% in March 2025, suggesting that it has improved asset health.
At the same time, the profitability of the sector, measured asset return (ROA), more than doubled, and in March 2021 in March 2025 increased from 1.11% to 2.4%.
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Sitharaman stressed that building a strong financial ecosystem prepared for the future brings deep cooperation between NBFC and banks, especially the public sector, and noted that the current synergies-partially brought promising results through common loans.
“In the future, such a partnership should be institutionalized and modified,” she said.
“The trouble -free digital architecture, common standards on board and interoperable service platforms can significantly strengthen the credit flow to insufficiently operated industries while ensuring risk and efficiency,” she added.
Sitharaman also said that NBFC is no longer “shadow banks”, due to their regulation, supervision and importance in the financial system and a wider economy.
“Recent regulatory measures, such as restoring risk weight on bank loans and release financial conditions, will improve loans’ prospects and strengthen the overall funding environment for this industry,” she added.
M. Nagaraju, secretary of the Ministry of Finance Services, said that NBFC plays a crucial role in managing inclusive economic growth – whether it helps farmers buy their first tractor or allows the business machine to own a sewing machine.
“You took the recognition of the last mile and showed what it really means serving Bharat, real India for metros,” he added.
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