13 hrs ago
RBI Deputy Governor Urges NBFCs to Diversify Funding
Shirish Chandra Murmu of the Reserve Bank of India gave advice to companies that lend money outside regular banks.
He said these companies should get money from several sources instead of relying too much on one.
This can help them stay safer when markets change.
He said corporate bonds and securitization should help share risks and free up money, not only provide quick cash.
Murmu said the companies need strong leadership, careful lending, and good treatment of customers.
He warned that lending too quickly can cause problems if borrowers cannot repay.
He also urged them to use technology to find trouble early and protect customer information from cyber threats.
He said India’s growth, urbanisation, and digitalisation will create more demand for loans, but the sector must grow responsibly.
RBI deputy governor Shirish Chandra Murmu urged NBFCs and HFCs to diversify funding and reduce reliance on concentrated sources.
He said deeper corporate bond markets and improved securitization could strengthen funding and transfer risk.
Murmu identified governance, liquidity, asset quality, customer protection, and cyber resilience as priorities.
He warned that rapid credit growth could raise risks, calling for stress testing, early warnings, and dynamic provisioning.
NBFC credit reached 16.7% of nominal GDP, up from 15.9% a year earlier, he said.
- Who
- Reserve Bank of India deputy governor Shirish Chandra Murmu, along with non-banking financial companies and housing finance companies.
- What
- Murmu urged NBFCs and HFCs to diversify funding, strengthen underwriting and risk management, and improve customer protection and cyber-security.
- Where
- Mumbai.
- When
- Thursday; the articles place the remarks at the CII NBFCs & HFCs National Summit 2026, also described as the 7th NBFC and HFC Summit.
- Why
- To reduce vulnerability to funding concentration and market-sentiment shifts while supporting sustainable growth.
Key facts
- Speaker
- Shirish Chandra Murmu, deputy governor of the Reserve Bank of India
- Main recommendation
- NBFCs and HFCs should diversify their funding sources
- Funding measures
- A deeper corporate bond market and securitization focused on risk transfer, capital release, skin in the game, and transparency
- Five priority areas
- Governance and culture; liquidity management; asset quality and credit risk; customer protection and fair conduct; and digital transformation and cyber resilience
- Credit share of nominal GDP
- NBFC credit was about 16.7%, compared with 15.9% a year earlier
- Bank-credit comparison
- NBFC credit was about 27% of credit extended by scheduled commercial banks, up from 26% a year earlier
- Regulatory approach
- The RBI will continue using proportionate regulation and applying existing rules to digital finance based on substance over form
Quotes
Shirish Chandra Murmu
Reserve Bank of India deputy governor
“A deep, liquid corporate bond market will help, and we will keep working with market participants to build one. Securitisation should also grow beyond a liquidity tool — into a genuine way to transfer risk and free up capital, with proper skin-in-the-game and transparency rules.”
livemint.com
deccanchronicle.com
“Let me be clear: growth must never come at the cost of underwriting standards.”
livemint.com
deccanchronicle.com
Sources
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