The Board of Directors for the Finance Industry Development Council (FIDC) has released its vision document and Code of Conduct today, a statement from FIDC informed.
FIDC has drawn a Vision Document for the Non-Banking Financial Companies (NBFC) sector for the next two years and how it wants to achieve this. It proposes to enhance the image, impact and income of the NBFC sector with the support of all stakeholders. The institution will play a significant role in ensuring high degree of corporate governance, adherence to regulatory norms and fair market practices among its members, said the statement.
Further, according to the statement, FIDC is issuing this Code of Conduct for all its members emphasising the need to enhance responsible lending behaviour and practices, and to ensure ethical practices in conduct of business. This Code of Conduct shall be a step in the right direction to enhance the confidence in the non-bank lending community, as this shall bring better discipline and harmony among the NBFCs.
It further mentioned that the Code of Conduct contains the guidance for various issues, inter alia, corporate governance, risk management, audit requirements, grievance redressal mechanism, delinquency management, education, outsourcing arrangements, engagement of recovery agents and collection agencies.
Umesh Revankar, Chairman, FIDC, and Executive Vice-Chairman, Shriram Finance, said in the statement, “I am sure the Code of Conduct, as prepared by FIDC with the suggestions of all, will be adhered to, by all its members in letter and spirit and will go a long way in promoting self-governance and disciplined growth of the NBFC sector. I believe this will be the harbinger of a much greater role played by the NBFC sector in the growth and sustainable financial health of our country. Together, we have overcome challenges and achieved remarkable milestones and come out stronger after every crisis. Our shared dedication defines us, and I am confident that the NBFC sector will rise up and play its role in Viksit Bharat 2047. Let’s embrace innovation, collaboration and excellence. Let’s continue to lead with integrity, creativity and a relentless pursuit of excellence, filled with prosperity, growth and fulfillment.”
