RBI chief urges non-bank lenders to uphold lending standards amid rising risk concerns.

RBI Governor Sanjay Malhotra urged NBFCs, HFCs, and microfinance institutions to maintain strong underwriting standards, monitor asset quality, and practice responsible lending during a January 5, 2026, meeting in Mumbai. He emphasized ethical conduct, customer focus, and timely grievance resolution, with participants representing about 53% of the sector’s assets. The discussion, part of ongoing RBI engagement, followed a similar meeting in February 2025 and addressed risks from rising NPAs and aggressive lending, despite overall stable capital and improving asset quality. The central bank remains vigilant on sectoral risks.