RBI’s evolving stance: Window of opportunity for NBFCs to catalyze inclusive growth

The Reserve Bank of India (RBI) has provided NBFCs a window of opportunity for inclusive growth.

Ajeet Kumar Singh, Co- Founder and MD, SAVE Solutions Pvt Ltd, said: 

The Reserve Bank of India’s evolving regulatory stance signals a transformative phase for the NBFC sector—one that goes beyond compliance and nudges us toward a more proactive role in driving inclusive financial growth. 

The calibrated tightening of norms, particularly under the scale-based regulatory framework, has brought about a welcome degree of discipline, transparency, and systemic resilience. At the same time, it recognizes the diversity and dynamism of NBFCs, enabling room for innovation, agility, and niche-focused growth.

We believe this is not merely a regulatory shift, but a strategic opportunity. As formal credit systems remain out of reach for large segments of India’s population—especially in rural and underserved geographies—NBFCs are uniquely positioned to bridge the gap. With improved governance, digital infrastructure, and risk-based oversight now guiding the ecosystem, NBFCs can scale responsibly while deepening their impact.

In particular, the RBI’s balanced approach toward fostering financial inclusion—through priority sector lending norms, digitization support, and regulatory sandbox initiatives—empowers NBFCs to deploy targeted solutions for MSMEs, first-time borrowers, and last-mile consumers. This opens a vital pathway to democratize credit, promote entrepreneurship, and support livelihoods in alignment with national development goals.

As we look ahead, collaboration between the regulator and NBFCs will be key. The shared objective must be to build a robust, agile financial sector that combines the reach of NBFCs with the regulatory guardrails of the central bank. This symbiosis will not only enhance credit access and trust but also catalyze equitable economic participation.

In short, RBI’s evolving stance is not just a compliance framework—it’s a catalyst for NBFCs to lead India’s journey toward inclusive, resilient, and sustainable financial growth.

Siddharth Maurya, Founder and MD, Vibhavangal Anukulakara Pvt Ltd added:

The Reserve Bank of India’s changing approach to regulating Non-Banking Financial Companies (NBFCs) seems to create a gap between flexibility and stability, which offers a great chance for the industry to catalyze inclusive growth. As the RBI continues streamlining its supervisory structure with a scaling enforcement paradigm and moving toward centralized oversight, the need for enforcement innovation commands responsibility. 

In the context of NBFCs, this serves as a green light to shift from the perception of fringe lenders to crucial stakeholders in India’s economic inclusion narrative.  

NBFCs focus on lending in rural and semi-urban areas, therefore, are better equipped to solve the credit need challenges than other established banking institutions face due to infrastructural and operational hurdles are a daunting task. 

The RBI’s calibrated support of these institutions that includes an emphasis on structures like digital lending policy frameworks, risk management practices, capital allocation norms, and overall market elasticity strengthens these institutions. Clarity of regulation enhances the ability of NBFCs to secure institutional funding, implement strategic alliances with fintech partners, and expand operations while ensuring corporate governance.  

Additionally, with the growth of micro-entrepreneurship and the increasing digitization of the economy, there is an uptick in needing tailored, nimble financial products. 

NBFCs are best positioned to address these opportunities with their more customer-centric lending models and higher order value servicing—for working capital loans, financing small businesses, empowering women entrepreneurs, or lending to middle-class borrowers with aspirations.  

The changes made by the RBI could serve as an NBFC business model shift driver, advancing these companies from conventional financiers to agents of change that enable inclusive growth. It does seem that with these opportunities comes greater responsibility, something these lenders must embrace alongside a shift in focus from lending to building trust and long term resilient socio-economic value across India.