Non-Banking Financial Companies (NBFC) tracker

Furthermore, the Reserve Bank of India's new IT governance directions encompassing both banks and NBFCs, indicating a comprehensive approach to enhancing IT practices across the financial sector will come into effect on 1 April  2024. These directives ensure that NBFCs, alongside banks adopt robust IT service management frameworks for improved operational resilience, data integrity, and cybersecurity. By including NBFCs, the RBI aims to standardise IT governance, risk management, and assurance practices across a wider spectrum of financial entities, addressing strategic IT alignment, risk and resource management, and the need for strong cryptographic controls and audit trails. This move underscores the importance of safeguarding financial operations against IT and cyber risks in an increasingly digital financial ecosystem.

As we navigate the complexities of 2024, the NBFC sector is expected to witness a blend of challenges and growth opportunities. The drive towards digital transformation, the quest for innovative funding mechanisms, and the strategic focus on sectors that fuel economic growth will define the trajectory of the sector. The emphasis on strong risk and governance frameworks, coupled with the sector's ability to adapt to regulatory changes, will be critical in shaping a resilient and vibrant NBFC ecosystem.