PhreeNewsPhreeNews
Notification Show More
Font ResizerAa
  • Africa
    • Business
    • Economics
    • Entertainment
    • Health
    • Politics
    • Science
    • Sports
    • Tech
    • Travel
    • Weather
  • WorldTOP
  • Emergency HeadlinesHOT
  • Politics
  • Business
  • Markets
  • Health
  • Entertainment
  • Tech
  • Style
  • Travel
  • Sports
  • Science
  • Climate
  • Weather
Reading: FM Nirmala Sitharaman criticises loan recovery practices, shares roadmap for NBFCs
Share
Font ResizerAa
PhreeNewsPhreeNews
Search
  • Africa
    • Business
    • Economics
    • Entertainment
    • Health
    • Politics
    • Science
    • Sports
    • Tech
    • Travel
    • Weather
  • WorldTOP
  • Emergency HeadlinesHOT
  • Politics
  • Business
  • Markets
  • Health
  • Entertainment
  • Tech
  • Style
  • Travel
  • Sports
  • Science
  • Climate
  • Weather
Have an existing account? Sign In
Follow US
© 2025 PhreeNews. All Rights Reserved.
PhreeNews > Blog > World > Business > FM Nirmala Sitharaman criticises loan recovery practices, shares roadmap for NBFCs
380784 fm.jpg
Business

FM Nirmala Sitharaman criticises loan recovery practices, shares roadmap for NBFCs

PhreeNews
Last updated: July 9, 2025 9:51 pm
PhreeNews
Published: July 9, 2025
Share
SHARE

Union Finance Minister Nirmala Sitharaman on Wednesday (July 9) criticised non-banking financial companies (NBFCs), urging them to adopt fair lending practices and humane recovery methods. She was addressing industry leaders at the NBFC Conclave 2025. Raising concerns over the increasing number of complaints in the space, she said recovery processes must operate within the bounds of humanity and regulation. The minister also said that NBFC interest rates should be reasonable, and all charges must be clearly and transparently communicated to customers.

The FM underlined the critical role of NBFCs in the country’s journey towards becoming a developed nation by 2047. “They are vital to sectors ranging from agriculture and small businesses to middle-income households,” she said.

“Whether it’s a farmer, a micro-entrepreneur, or a middle-class family, NBFCs serve as essential credit providers,” she noted.

Given global economic uncertainties, Sitharaman stressed the need for NBFCs to strengthen risk management and liquidity oversight. She added that all lending decisions must be based on the borrower’s actual need and repayment capacity.

Long-term vision for the sector

Outlining the government’s roadmap for NBFCs, the Finance Minister presented a series of long-term policy goals, here key highlights of her speech:

  • By 2047, NBFC lending should reach at least 50 per cent of total bank lending, up from the current 24 per cent
  • 50 per cent of NBFC credit should flow into high-growth sectors like green initiatives, affordable housing, and MSMEs
  • 20 per cent of NBFC lending should be done under the co-lending framework with banks
  • All NBFCs must adopt digital processes, supported by a common minimum technology standard
  • The co-lending model is yielding positive results — this partnership should be institutionalised
  • The government will continue to support NBFCs and will prioritise addressing the industry’s concerns
  • She noted that many large NBFCs are already complying with bank level governance and compliance norms

She proposed the development of digital co-lending platforms, common onboarding standards, and interoperable systems to improve efficiency and customer experience.

Sitharaman also urged the industry to pass these benefits on to end consumers, especially small borrowers.

Warren Buffett’s 7 point playbook for mutual fund investors
Top 7 essential cybersecurity practices to safeguard your data in 2025
Exploring The Case For European Equities In The Current Market
Washington Post columnist says CVS anti-theft measures alienate customers
Kalpataru raises Rs 708 crore from 9 anchor investors; Singapore’s GIC, Bain Capital lead
TAGGED:criticisesloanNBFCsNirmalapracticesrecoveryroadmapsharesSitharaman
Share This Article
Facebook Email Print
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow US

Find US on Social Medias
FacebookLike
XFollow
YoutubeSubscribe
TelegramFollow

Weekly Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Forex

Market Action
Popular News
Bloombergquint2f2025 04 232fqd3wb1k82fhigh angle medical desk composition.jpg
Business

Torrent Pharma to acquire JB Chemicals in Rs 25,689 crore deal from KKR, merger planned

PhreeNews
PhreeNews
June 29, 2025
Nigeria: ‘Nigeria-China Arbitration Pact to Transform Cross-Border Business’
The 5 best luxury hotels in Cusco
Airtel Money Kenya Launches 50% Cashback Offer on Bank-to-Wallet Transfers
ContactArt: 3D Hand-Object Interaction Dataset

Categories

  • Markets
  • Travel
  • Sports
  • Economics
  • Tech
  • Business
  • Sports
  • Tech
  • Travel
  • Entertainment

About US

At PhreeNews.com, we are a dynamic, independent news platform committed to delivering timely, accurate, and thought-provoking content from Africa and around the world.
Quick Link
  • Home
  • Blog
  • About Us
  • My Bookmarks
Important Links
  • About Us
  • 🛡️ PhreeNews.com Privacy Policy
  • 📜 Terms & Conditions
  • ⚠️ Disclaimer

Subscribe US

Subscribe to our newsletter to get our newest articles instantly!

© 2025 PhreeNews. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?