Mumbai, Sept. 3 -- Non-banking financial companies (NBFCs) and housing finance companies (HFCs) need to diversify their funding sources and reduce their vulnerability to shifts in market sentiment and funding concentration, Reserve Bank of India deputy governor Shirish Chandra Murmu said on Thursday.

A deeper, more liquid corporate bond market would help strengthen funding structures, while securitization should evolve beyond its role as a liquidity tool, Murmu said in his keynote address at the CII NBFCs & HFCs National Summit 2026 in Mumbai on Thursday.

"Securitization should also go beyond liquidity tools to become a genuine way to transfer risk and free up capital, with proper skin in the game and transparency rules," Murmu said.

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