India cenbank governor pushes for stronger governance in NBFCs, HFCs

India’s non-banking finance companies (NBFCs) and housing finance companies (HFCs) need to further strengthen governance standards, improve risk management practices and look to contain risks associated with unsecured lending, the governor of the central bank said.

Reserve Bank of India (RBI) Governor Shaktikanta Das met top executives of large NBFCs and HFCs in Mumbai on Friday, a release on the central bank’s website said.

Discussions were also held on diversifying resources for entities to contain increasing reliance on bank borrowings and strengthening balance sheets with improved provisioning cover, among others, the RBI said. (Reporting by Siddhi Nayak; Editing by Varun H K)