At the CII NBFC & HFC Summit, Murmu cautioned non-bank lenders and housing finance companies against chasing loan volumes while overlooking repayment capacity. Faster lending can bring greater asset-quality risks, making careful credit assessment essential even when business is growing strongly.

Drawing attention to earlier liquidity troubles, he said firms could become vulnerable when market confidence shifts or funding is concentrated among too few providers. Lenders should broaden their funding sources and strengthen their ability to meet payment obligations. He also called for robust stress tests and proactive provisions against possible losses.

Murmu encouraged artificial intelligence and machine learning to identify borrowers showing early repayment stress, rather than waiting for defaults. He highlighted blockchain in supply-chain finance and AI-based fraud checks, while emphasising cybersecurity and protection of customer information. Technology should neither shut out vulnerable customers nor obscure risks from regulatory scrutiny.

Customer safeguards must keep pace with innovation, he said, referring to RBI guidance covering recovery agents. Fair lending practices and effective complaint resolution remain crucial to public confidence, particularly when negative customer experiences can spread quickly.

NBFC lending amounts to roughly 16.7% of nominal GDP, compared with 15.9% a year earlier. It also equals 27% of scheduled commercial banks' total credit. Murmu recognised the sector's contribution in underserved locations and among MSMEs, where substantial borrowing needs remain unmet.