The RBI deputy governor, J Swaminathan, made this comment on Friday at a Chennai convention organised by the banking regulator for big NBFCs, statutory auditors and chairpersons of audit committees on the lenders.
An announcement issued by RBI acknowledged that Swaminathan “exhorted the NBFCs to proactively undertake equity in lending and restoration supported by a strong grievance redress mechanism.”
He additionally careworn that risk-taking by NBFCs should be prudent and well-planned, and by no means past the chance absorption capability of the entity involved.
The RBI’s issues stem from the higher-interest some finance firms cost debtors. In latest months, the regulator needed to impose lending curbs on a couple of finance firms, similar to Navi FInserv, Arohan Monetary Providers and DMI Finance, because of the alleged usurious charges they charged debtors.
These restrictions have been reversed after the finance firms took corrective measures.