By: Joydip Gupta, APAC Head, Scienaptic AI 

“The RBI’s announcement to cut the repo rate by 50 bps to 5.50% and tie NBFC loan pricing to external benchmarks is a well-timed and progressive initiative to inculcate a more transparent, equitable, and efficient credit ecosystem. By aligning NBFC lending procedures with broader market benchmarks, RBI is enabling a fairer, streamlined credit cycle for borrowers with an assurance of faster and efficient transmission of monetary policy adjustments.

This will necessitate substantial operational and risk management changes for Non-Banking Financial Companies (NBFCs), but it will be a beneficial transformation in the long run. This shift will be vastly assisted by innovative technologies, such as AI-driven decision-making systems, which can help lenders adjust their pricing structures, improve borrower communication, and recalibrate pricing models. I believe this is a progressive step to reinforce financial stability and open the door to a more intelligent, technologically advanced lending ecosystem.”