FM flags caution alert on NBFCs’ lending

New Delhi: Finance Minister Nirmala Sitharaman on Thursday said NBFCs and small finance banks need to remain cautious, while lending as suggested by the Reserve Bank of India (RBI).

Speaking at ‘DATE with Tech’ event here, Sitharaman cautioned that NBFCs and small finance banks should respect the red line and should not go too far in their enthusiasm. “Enthusiasm is good, but sometimes it becomes a bit too far for people to digest. So as a measure of caution the RBI has also alerted small finance banks, NBFCs to be careful that they don’t go too far too soon and face any downside risks later,” she said. The minister further said to stop cyber frauds, where people are duped by way of a phone call or SMS, the government periodically reviews public sector banks, and regulator RBI reviews its own systems.