By:- Mr. Shaji Varghese, Chief Executive Officer, Muthoot FinCorp Ltd.
“We had highlighted in our pre-Budget expectations that branch licensing norms needed to be liberalised, as this would significantly improve last-mile credit delivery. It is therefore encouraging to see movement in this direction from the regulators. NBFCs are in a strong position to serve customers at the bottom of the pyramid because of their deep reach, strong local connect, and increasing use of technology. For many people who are still outside the formal banking system, access still depends on proximity and trust, and branch presence plays a critical role in enabling that. This ease in regulation will now help bring more individuals and SMEs into the formal financial system, which is one of the key priorities for the country. At the end of the day, what is good for the nation is good for the sector and, most importantly, good for the people. Measures that liberalise branch expansion and enable responsible NBFCs to grow will go a long way in strengthening financial inclusion and supporting inclusive economic growth for a Viksit Bharat.”