Mumbai, February 27, 2025 – Under Governor Sanjay Malhotra’s leadership, the RBI has shifted to a more consultative decision-making approach, engaging with financial sector stakeholders. This was evident in the recent rollback of increased risk weightage on loans to NBFCs and MFIs, following discussions with industry executives.
Analysts at Nuvama Research view this as a strategic shift from previous policies, aiming for greater stakeholder involvement. The move is expected to lower funding costs for NBFCs, especially those dependent on bank financing, and could influence banks’ lending strategies in the sector.
