The Federation of Automobile Dealers Associations (FADA) recently held a landmark meeting with Mr. Sanjay Malhotra, Hon’ble Governor of the Reserve Bank of India, at the RBI Headquarters in Mumbai. This marked FADA’s first-ever engagement at the level of the RBI Governor – a significant step forward in its ongoing policy outreach efforts.
During the meeting, FADA submitted a detailed representation on Ease of Doing Business in Auto Retail, outlining the key structural and financial challenges faced by its members across the country. The Hon’ble Governor gave the delegation a patient hearing and acknowledged the sector’s growing contribution to the Indian economy and employment generation.
He took note of several critical issues raised by FADA and assured that the RBI would actively examine the following:
- Timely transmission of repo rate cuts to end borrowers
- Reassessment of the 100% risk weightage on auto loans
- Extension of CGTMSE cover to authorised dealerships
- Regulation of unethical direct incentives offered to dealership staff by banks
The Governor also indicated that the RBI would address some of these matters internally and, where necessary, in consultation with the concerned ministries.
The FADA delegation comprised Mr. Sai Giridhar (Vice President), Mr. Amar Jatin Sheth (Secretary), and Mr. Saharsh Damani (CEO). The meeting represents a major milestone in FADA’s sustained efforts to integrate the auto retail sector into the broader financial and regulatory discourse.
