Das, addressing these financial entities, urged them to exercise prudence in utilizing this leeway.
The call for judiciousness comes against the backdrop of the RBI’s efforts to support economic recovery while maintaining financial stability. NBFC-MFIs play a crucial role in providing financial services to the underserved and unbanked segments of the population. The flexibility in interest rates is aimed at enabling these institutions to navigate challenges effectively and contribute to broader financial inclusion.Source:-bussiness standardGovernor Das likely emphasized the need for a balanced approach, ensuring that while NBFC-MFIs utilize the flexibility to address economic challenges, they also consider the impact on borrowers. Striking a balance between financial viability and consumer welfare is crucial for sustaining a healthy and inclusive financial ecosystem.
Source:-cnbctv18This directive aligns with the central bank’s broader strategy of promoting responsible lending practices across the financial sector. By advising NBFC-MFIs to be judicious, Governor Das is underlining the importance of maintaining the sector’s integrity and fostering a culture of ethical financial conduct.
In conclusion, Shaktikanta Das’s message to NBFC-MFIs reflects the RBI’s commitment to fostering a resilient and responsible financial sector. The call for judiciousness underscores the delicate balance required to navigate economic challenges while ensuring fair treatment of borrowers, ultimately contributing to the overall stability and inclusivity of the financial landscape.Share your views in the comments
RBI Governor Shaktikanta Das asks NBFC-MFIs to be judicious in using flexibility on interest rates
By tirupatinews
