RBI Deputy Governor Shri S. C. Murmu spoke at the 7th CII NBFC and HFC Summit
FinTech BizNews Service
Mumbai, 5 September, 2026: The opportunities before NBFCs and HFCs are substantial, supported by India’s economic growth, demographic dividend, urbanisation and digital transformation, said Shri S. C. Murmu, Deputy Governor, Reserve Bank of India. The future of the sector, he noted, would be shaped by both technology and trust. “The Reserve Bank will keep supporting responsible growth, encouraging innovation and managing risk with prudence,” Shri Murmu said.
Addressing the 7th CII NBFC and HFC Summit on the theme “NBFCs, HFCs and the New Phase of Growth,” Shri Murmu said a strong and diverse credit system would be essential for India’s journey towards a developed, inclusive and technologically advanced economy. “NBFCs and HFCs are no longer on the sidelines of the story. They extend credit to the last mile, reach the underserved, and bring innovation to lending across the country,” Shri Murmu said.
The Deputy Governor identified three areas where NBFCs could lead in the new phase of growth: 1) financial inclusion and last-mile reach, 2) sector-specific expertise and 3) innovation in product design and delivery. He informed the gathering that NBFC credit has risen to about 16.7% of nominal GDP, from 15.9% a year earlier, and account for approximately 27% of credit extended by scheduled commercial banks, up from 26% a year earlier.
Shri Murmu, while highlighting on the benefits of evolving technology, said that NBFCs and HFCs are well positioned to use technology, local knowledge and specialised business models to serve customers in remote areas, niche markets and segments.
The Deputy Governor, however, cautioned that growth must not come at the cost of underwriting standards, asset quality or customer protection. He said institutions need to strengthen their foundations as they expand in scale and complexity. He identified five areas that remain critical for NBFCs and HFCs next phase of growth - governance and culture; liquidity management; asset quality and credit risk; conduct and customer protection; and digital transformation and cyber resilience.
On digitalisation, Shri Murmu stressed that technology must support better decisions without weakening institutional accountability. Cybersecurity and operational resilience would remain essential to protect customer data and maintain public trust. Shri Murmu added that customer trust is fundamental to sustainable business and that innovation must not outpace the protection of vulnerable customers.
Shri Murmu underscored that the RBI’s regulatory approach is to balance innovation with financial stability. The Scale-Based Regulation framework provides for proportionate rules based on the size, activities and risk profile of NBFCs. He highlighted recent measures to strengthen the sector, including the liquidity-risk management framework, phased Liquidity Coverage Ratio requirements, enhanced risk-management and internal-audit requirements, fraud-risk management directions and simplified supervisory reporting.
The RBI has also taken steps to make regulation more transparent and consultative, consolidate entity-wise regulations and support lending to important sectors, including infrastructure. “Regulation is not only about managing risk; it is also about enabling sustainable growth,” he said.
Highlighting industry’s priorities, Mr Abhimanyu Munjal, Chair, CII National Committee on NBFCs & HFCs and Managing Director & CEO, Hero FinCorp, said the next phase of financial inclusion should be measured not merely by the volume of credit created, but by how intelligently, responsibly and widely credit is distributed. He highlighted three priorities for the sector: building a resilient funding architecture, unlocking digital credit infrastructure and enabling responsible product innovation.
Mr Umesh Revankar, Co - Chair, CII National Committee on NBFCs & HFCs and Executive Vice Chairman, Shriram Finance, emphasised the importance of building “scale with quality” and developing sustainable liability structures. Mr Rakesh Singh, Co - Chair, CII National Committee on NBFCs & HFCs and Executive Director & CEO (NBFC), Aditya Birla Capital, emphasised the importance of continued collaboration among banks, NBFCs, HFCs, fintechs, Account Aggregators, technology providers and credit-information companies to build a strong and inclusive credit system.
