Finance minister to meet NBFCs on March 8 to discuss key issues and greater participation of NBFCs in financial services

The conclave will provide a platform for stakeholders in the NBFC and MFI sectors to come together, discuss key issues, share insights, and explore opportunities for collaboration and growth in these important areas of the financial services industry.

A statement from the ministry stated that "A full day NBFC conclave is scheduled to be held on 8.3.2025, from 10:00 a.m. onwards at Delhi. Hon'ble Finance Minister has kindly consented to attend and address the same".

Finance Minister Nirmala Sitharaman will also attend the conclave and deliver a keynote address, underlining the importance of these sectors in the broader financial ecosystem.

The Ministry has requested all concerned parties to block the date for this significant event. Further details regarding the program and agenda of the conclave will be shared in due course.

This event is expected to draw significant participation from industry leaders, policymakers, and experts, offering a valuable opportunity for networking and knowledge-sharing among key players in the financial sector.

Recently, Reserve Bank of India (RBI) has highlighted the need for Non-Banking Financial Companies (NBFCs) to diversify their sources of funding as a key risk mitigation strategy.

In its latest report, the RBI noted that while the dependency of NBFCs on banks has moderated slightly, it remains significantly high.

It said "The dependence of NBFCs on banks remain high, notwithstanding some moderation; NBFCs need to further diversify their sources of funds as a risk mitigation strategy".

The report emphasized that NBFCs must broaden their funding sources to reduce concentration risks. It also pointed out that the sector faces emerging challenges, including cybersecurity threats, evolving concentration risks, and climate-related financial risks associated with lending to certain industries.

The RBI warned that an imprudent "growth at any cost" approach could be detrimental to the sector, urging NBFCs to implement robust risk management frameworks.

"An imprudent 'growth at any cost' approach would be counter-productive, and a robust risk management framework should be implemented" said the report. (ANI)