The liquidity management should help ease recent pressure on cost of funding
FinTech BizNews Service
Mumbai, 6 February 2026: The Monetary Policy Committee (MPC) held its 59th meeting from February 4 to 6, 2026, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.
The RBI Governor today made a Statement on Developmental and Regulatory Policies. This Statement sets out various developmental and regulatory policy measures relating to (i) Regulations; (ii) Payments System; (iii) Financial Inclusion; (iv) Financial Markets; and (v) Capacity Building.
Here are views of top notch representatives form the NBFC sector on the outcomes of the MPC, RBI decisions:
Vivek Singh, CEO, Home Credit India
The RBI’s February MPC strikes a reassuring balance between supporting economic growth and preserving financial stability, aided by benign inflation and stable macroeconomic fundamentals. The emphasis on strengthening customer protection—through enhanced safeguards against mis-selling, clearer recovery practices, and compensation for small-value digital fraud—is a timely intervention that will further reinforce trust in the formal credit system.
The increase in the collateral-free loan limit for MSMEs to Rs20 lakh is particularly meaningful for micro-entrepreneurs and small businesses, as it broadens access to affordable credit and enables income-generating opportunities at the grassroots level. Alongside measures aimed at deepening financial inclusion and improving liquidity transmission, these steps will encourage responsible borrowing, support consumption, and strengthen the resilience of India’s retail and MSME credit ecosystem.
Garima Kapoor, Deputy Head of Research and Economist at Elara Capital
Focusing on effective transmission of rate cuts already taken and being encouraged by healthy growth trajectory in the economy RBI's MPC decided to keep repo rate unchanged while awaiting new GDP and CPI series. With inflation expected to rise hereon amid normalization of food prices and adverse base effect, the scope for further rate cuts has shrunk. A shock to growth-inflation balance would only propel another rate cut. For now, we expect a prolonged pause from the RBI.
Mr. Sudipta Roy, Managing Director & CEO, L&T Finance Ltd.:
“Monetary Policy announcements this morning are along the expected lines with reassurances on domestic economic resilience and continued policy support. RBI’s messages on its dynamic and pre-emptive approach in liquidity management should help ease recent pressure on cost of funding. Sector specific steps like doubling of collateral free loan limit for MSMEs and boosting long term funding for Real Estate sector via REITs is a big positive for credit landscape in the economy. Growth push evident in both fiscal and monetary policy announcements this week.”
Abhimanyu Munjal, MD & CEO, Hero FinCorp
The Reserve Bank of India’s decision to keep the repo rate unchanged provides much-needed predictability amid a volatile global environment. Coming after a mature and investor-friendly Union Budget, this steady policy stance gives NBFCs and India Inc the confidence to plan for the year ahead.
The increase in the collateral-free loan limit for MSMEs to Rs20 lakh is a particularly welcome move, as it will enable NBFCs like Hero FinCorp to expand access to formal credit more effectively across tier-2 and tier-3 markets.
The Governor’s emphasis on consumer protection, including measures to compensate victims of fraudulent transactions, will further strengthen trust and support the continued maturation of India’s digital lending ecosystem. Together, these steps reflect a calibrated approach that will support credit growth and financial inclusion as India progresses towards its $5 trillion economy ambition.
