DFS to Discuss RBI Recommendations and Reforms for NBFC Sector Stability

The Department of Financial Services (DFS) is set to meet to discuss the Reserve Bank of India's recommendations on NBFC reforms, including a new stability index and enhanced supervisory frameworks. Key topics include governance reforms, prior RBI approval for significant management changes, potential NBFC transitions to banks, and operational improvements such as streamlined KYC processes, relaxed branch licensing for gold-loan NBFCs, adjusted bond haircuts, and AI-driven fraud detection in digital payments.