The RBI cautioned a section of non-banking finance companies (NBFCs) against adopting aggressive growth strategies without building up proper risk management practices.

The apex bank said it has come across instances of investors pushing some NBFCs to grow aggressively, which is leading to inappropriate business practices such as `usurious’ interest rates coupled to high processing fees and frivolous practices.

RBI governor Shaktikanta Das warned it will ``not hesitate to take appropriate action if necessary’’. Self-correction by the non-bank lenders would be the desired option.

He said there have been reports about the possibility of stress buildup in a few unsecured loan segments.

``Banks and NBFCs, on their part, need to carefully assess their individual exposures in these areas, both in terms of size and quality. Their underwriting standards and post-sanction monitoring have to be robust.

"Continued attention also needs to be given to potential risks from inoperative deposit accounts, cybersecurity landscape and mule accounts.’’

Das said it has been observed that some NBFCs are aggressively pursuing growth without building up sustainable business practices and risk management frameworks that is proportionate with the scale of their portfolio.