FADA Meeting with RBI Governor – A Milestone for FADA

FADA submitted detailed representation on Ease of Doing Business in Auto Retail, highlighting key structural and financial bottlenecks being faced by our members across the country.

The Governor gave the meeting a patient hearing and acknowledged the sector’s growing contribution to the economy and employment. He took note of several critical issues and assured that RBI would actively look into:

• Timely transmission of repo rate cuts to end borrowers;

• Reassessment of 100% risk weight on auto loans;

• Extending CGTMSE cover to authorised dealerships;

• Curbing unethical direct incentives being disbursed to dealership staff by banks.

He further indicated that RBI would take up some of these matters internally and, where required, in coordination with concerned ministries.

Mr. Sai Giridhar VP FADA, Mr Amar Jatin Sheth Secretary FADA and Mr Saharsh Damani CEO FADA had a landmark meeting Mr Sanjay Malhotra, Hon’ble Governor, Reserve Bank of India, at RBI Headquarters, Mumbai.

This was our first-ever engagement at the level of RBI Governor – a significant step forward in our policy outreach journey.

This meeting marks an important milestone in FADA’s continued efforts to bring auto retail into the mainstream financial and regulatory discourse.