Go Unlimited with Magzter GOLD
Get unlimited access to 9,500+ magazines, newspapers and Premium stories for just
Try GOLD - Free
FM Sitharaman: NBFCs Must Ensure Fair and Respectful Loan Recovery Practices
The Business Guardian
|July 11, 2025
Finance Minister Nirmala Sitharaman has urged NBFCs to adopt fair recovery practices and partner with banks to improve priority sector lending.
Union Finance Minister Nirmala Sitharaman emphasized that the loan recovery practices of Non-Banking Financial Companies (NBFCs) must be fair, respectful, and empathetic, and must strictly align with the Reserve Bank of India's (RBI) Fair Practices Code.
Speaking at the NBFC Symposium 2025 held in New Delhi on Wednesday, the minister urged NBFCs to avoid harsh recovery measures, especially in cases involving small loan amounts, and reminded them of the importance of customer dignity.
Recovery practices of NBFCs must be fair, empathetic and respectful, in strict accordance with the RBI's Fair Practices Code," Sitharaman said.
She noted that sometimes media reports highlight harsh recovery actions taken for very small loan amounts like Rs 500.
Sensationalized reporting in the media, which they are right in reporting. I don't fault the media at all on this. Where harsh measures are taken for recovery of a 500 rupee, heartbreaking stories come out," she said.
This story is from the July 11, 2025 edition of The Business Guardian.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 9,500+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM The Business Guardian
The Business Guardian
GST CUTS TO BOOST ECONOMY, BUT REVENUE LOSS COULD HIT BANKING SECTOR
While the government has estimated an annual revenue loss of about Rs 480 billion, due to the reduced Goods and Services Tax (GST) rates on various products, a recent report by Systematix Research has pegged the figure much higher, at nearly Rs 1.2 trillion.
1 mins
September 21, 2025
The Business Guardian
Ahead of IPO, Ganesh Consumer Products raises Rs 122 crore
Ganesh Consumer Products Ltd, a key player in packaged food products in eastern India, on Friday said it has raised over Rs 122 crore from anchor investors, ahead of its initial share-sale opening for public subscription.
1 min
September 21, 2025
The Business Guardian
Third round of India-New Zealand FTA negotiations concludes
The third round of negotiations for the India-New Zealand Free Trade Agreement (FTA) concluded successfully on Friday in Queenstown, New Zealand.
1 min
September 21, 2025
The Business Guardian
'Capex, Opex subsidies in mineral scheme to boost recycling infra'
Eligible feedstock is e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste & LIB scrap, e.g. catalytic converters in end-of-life vehicles.
1 min
September 21, 2025
The Business Guardian
Zelio E-Mobility gets Sebi nod for Rs 78-cr IPO
Electric vehicle maker Zelio E-Mobility Ltd on Friday said it has received approval from capital market regulator Sebi for its SME IPO to raise Rs 78 crore.
1 min
September 21, 2025
The Business Guardian
US' H-1B fee move can have ripple effects on US innovation system
Indian IT industry body Nasscom has expressed concerns following the White House’s September 19 announcement of anew USD 100,000 annual fee on H-IB visa applications, calling the move potentially disruptive to global business continuity and the innovation ecosystem in the United States.
2 mins
September 21, 2025
The Business Guardian
FIRST PRIVATE SECTOR GOLD MINE SET TO BE COMMISSIONED SOON
India's first private sector gold mine at Jonnagiri in Andhra Pradesh, developed by Geomysore Services and Deccan Gold Mines, is set to be commissioned soon.
2 mins
September 21, 2025
The Business Guardian
Govt activates portal for GST complaints
Nepali, Gujarati, Marathi, Kannada, Telugu, Tamil, Malayalam, Maithili, Santhali, Bengali, Odia, Assamese, and Manipuri) via toll-free number 1915 or through the Integrated Grievance Redressal Mechanism (INGRAM).
1 min
September 21, 2025
The Business Guardian
Build infra for rupee trades beyond USD-INR pair: RBI Governor
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said the Clearing Corporation of India Ltd (CCIL) should prepare for the next phase of financial market development by facilitating currency trading beyond the dollar-rupee pair, as part of the broader goal of internationalising the Indian rupee.
1 min
September 21, 2025
The Business Guardian
COMMUNITY LEADERSHIP KEY TO BUILDING INDIA'S PUBLIC EDUCATION SYSTEM
At just 24, Deve Kichche has transformed education in the Manikonta and Misma villages, located in Dantewada, Chhattisgarh.
4 mins
September 21, 2025
Listen
Translate
Change font size