Reserve Bank of India (RBI) governor Sanjay Malhotra on Thursday asked non-banking finance companies (NBFCs) to ensure fair treatment of their customers and put in place an effective mechanism for quick redressal of grievances.

The governor met managing directors and chief executive officers of select NBFCs across all layers.

They included government NBFCs, housing finance companies and micro-finance institutions. These non-banks constituted nearly 50 per cent of the total assets of the sector.

According to the RBI, representatives from self-regulatory organisations (SROs), and micro finance institutions network (MFIN) as well as from the Finance Industry Development Council (FIDC) also participated in the meeting.

Malhotra, in his opening remarks, touched upon the role played by NBFCs in credit intermediation, particularly in making credit available for small businesses and niche segments.

The RBI said in a statement that Malhotra highlighted the collaborative efforts required between the Reserve Bank and the NBFCs. Here he stressed upon balancing growth aspirations with sound practices for ensuring inclusive development, customer protection and financial stability.