The financial parameters of non-banking financial companies (NBFC) is improving in tandem with banks, RBI Governor Shaktikanta Das said while announcing the Monetary Policy review on February 8.
"Good governance, robust systems, sound compliance culture and protection of customer interest are of paramount interest for the safety of the financial institutions,” Das said.
Earlier, on November 22, Das said banks and NBFCs need to be watchful of emerging stress on their books. Speaking at an event organised by the industry body FICCI and the Indian Banks Association, Das asked banks and NBFCs to continue stress-testing their books. "Banks and NBFCs must continue to do stress tests of their books. At the immediate juncture, there is no cause for worry," Das said.
Also read: RBI Governor says banks, NBFCs need to be watchful of stress building up
"In fact, there is a strong case for companies in the real sector also to stress test their businesses and balance sheets. Many of them may already be doing so, but it would be desirable that many more also do this," Das said.
MPC decision
The Reserve Bank of India’s Monetary Policy Committee has decided to keep the policy repo rate unchanged at 6.5%.
The six-member monetary policy committee voted by 5:1 majority to keep the repo rate unchanged at 6.50 per cent in its last meeting of FY24 as retail inflation continues to be above its target of 4 per cent.
The MPC also decided by a majority of five out of six members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth.
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