Rajendra Setia: Leveraging technology and data analytics, there are ample opportunities to address the unique needs of Rajasthan's populace, especially within the vital MSME and Vehicle finance sector
FinTech BizNews Service
Mumbai, March 16, 2024: The Board of Directors of Finance Industry Development Council (FIDC) convened a meeting in Jaipur, emphasizing the critical need for collaborative partnerships, funding structure, and the exchange of best practices among Non-Banking Financial Companies (NBFCs) to propel India's growth beyond 7%. Chairman of FIDC and Executive Vice Chairman of Shriram Finance, Mr. Umesh Revankar, underscored the imperative for NBFCs to unite and cooperate, particularly in light of the ambitious growth targets set by the government.
Mr. Revankar highlighted that fostering transparent communication and building a compelling narrative around the positive impact of NBFCs on the economy will not only enhance the sector's credibility but also play a pivotal role in attracting investor confidence, thereby making it easier to raise the necessary funds for sustained growth and development.
Acknowledging the pivotal role of NBFCs in financial inclusion—addressing gaps left by banking sector —Revankar emphasized the need for members to share success stories and initiatives that showcase the sector's commitment to inclusive growth. This, he noted, would contribute to public awareness regarding the significant role played by NBFCs in serving underserved segments of the population.
The board meeting also highlighted the advocacy role of FIDC in championing the interests of its members. Discussions encompassed specific initiatives from regulators, policy advocacy efforts, and member engagement programs aimed at fortifying the NBFC ecosystem.
Talking on behalf of large number of NBFCs as well as borrowing MSMEs, entrepreneurs, small traders and transporters locally from Rajasthan, Mr. Rajendra Setia, Managing Director, SK Finance Ltd., said, “The NBFC sector in Rajasthan is set for significant growth, driven by the state's economic potential. With a focus on fostering financial inclusion, supporting MSMEs, and catalyzing rural development, NBFCs can play a pivotal role in providing customized financial solutions. Leveraging technology and data analytics, there are ample opportunities to address the unique needs of Rajasthan's populace, especially within the vital MSME and Vehicle finance sector, contributing to entrepreneurship and overall economic growth.”
Speaking on navigating challenges, Mr. Setia emphasized the need for collaboration with regulatory bodies to ensure compliance while maintaining operational flexibility. Cybersecurity measures should be robust to protect sensitive financial data, and a focus on skill development is essential to enhance workforce capabilities. Building strong partnerships with local communities and understanding the cultural nuances will also be pivotal in gaining trust and expanding outreach, he further added.
The evolving financial landscape prompted discussions on newer funding areas, including sustainable financing opportunities. Members stressed the importance of meaningful cooperation with fintech firms, considering the impact of digital transformation and innovative financial products on the industry. The imperative for increased collaboration among members emerged as a key theme, emphasizing the collective effort required to navigate and leverage emerging trends in the sector.
Finance Industry Development Council (FIDC) is a Representative Body of NBFCs registered with the Reserve Bank of India. FIDC was formed 19 years ago and is the recognized face of the NBFC sector. FIDC has been engaged in regular interaction both with Reserve Bank of India and Govt. of India, which include pre-budget meetings and important policy related meetings with RBI. Almost all the leading NBFCs and a large number of small and medium sized NBFCs are our members.
