DFS Secretary Holds Stakeholder Meeting with NBFCs to Address Sectoral Issues

Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS) under the Ministry of Finance, chaired a high-level meeting with major Non-Banking Financial Companies (NBFCs) in New Delhi to discuss challenges facing the sector and explore solutions through stakeholder consultation.

The meeting brought together chief executives, senior officials and representatives from leading NBFCs, along with Self-Regulatory Organisations (SROs) representing the sector, including the Finance Industry Development Council (FIDC), the Microfinance Institutions Network (MFIN) and Sa-Dhan.

Senior officials from key government and regulatory bodies also participated in the discussions, including representatives from the Reserve Bank of India (RBI), the Department of Revenue (DoR), the Unique Identification Authority of India (UIDAI) and the Department of Financial Services (DFS).

The engagement aimed to create an open platform for dialogue on issues affecting NBFCs, enabling participants to exchange ideas and explore solutions collaboratively. During the meeting, detailed discussions were held on matters related to the operational domains of the RBI, the Department of Revenue and UIDAI.

Participating NBFCs presented various concerns related to their operations, and potential solutions were deliberated upon with the relevant authorities present at the meeting.

Addressing the participants, Secretary Nagaraju emphasised the need for NBFCs to become stronger, more resilient and financially sound in order to effectively serve underserved segments of the population and individuals who are new to formal credit systems.

He highlighted the important role NBFCs play in expanding financial inclusion and supporting credit access for sectors that are often not adequately served by traditional banking institutions.

Nagaraju also advised that a dedicated workshop be organised in collaboration with UIDAI and the National Payments Corporation of India (NPCI) to help NBFCs better understand and utilise Know Your Customer (KYC) systems and digital identity infrastructure more effectively.

In addition, Self-Regulatory Organisations for NBFCs were requested to develop a framework outlining potential reforms that could further strengthen the sector and improve governance, operational efficiency and regulatory compliance.

Officials noted that continued engagement between the government, regulators and industry stakeholders is essential to addressing operational challenges faced by NBFCs while ensuring the sector remains robust and capable of meeting the growing credit needs of the economy.

The Finance Ministry said such consultations will help facilitate the resolution of industry issues while strengthening the NBFC ecosystem to support broader economic growth and financial inclusion.