Stricter Norms for Sustainable Lending, According to RBI Governor Shaktikanta Das Introduction RBI Governor Shaktikanta Das recently addressed the annual FIBAC event, where he emphasized the necessity of stricter norms on unsecured lending for sustainable growth. He explained that while certain sectors such as housing and vehicle loans, as well as small business credits, were exempted from these norms due to their positive impact on the economy, the focus remained on sustainability. This article delves […]

Fiscal Future of India : Achievements and Challenges Introduction India’s fiscal finances have shown improvement in terms of spending quality, with increased capital spending by the central government on infrastructure projects. Additionally, the fiscal deficit of the states is under control and remains at pre-pandemic levels. However, there are still concerns that need to be addressed. This article examines the current state of India’s fiscal future, discussing both the achievements and challenges that lie ahead. […]

NBFCs Must Prioritize Product Diversification and Funding Profile, says Crisil   Introduction According to Crisil Ratings, non-banking financial companies (NBFCs) will need to focus on diversifying their product offerings and funding profiles in the coming fiscal year. This is in response to the expected moderation in the growth of assets under management (AUM) next year. Slowdown in Non-Bank AUM Growth Crisil predicts that non-bank AUM will grow by 14-17% in fiscal year 2025, which is […]

Can the RBI Slow India’s Retail Lending Binge? Introduction and Background In a recent statement, Shaktikanta Das, the governor of the Reserve Bank of India (RBI), expressed concern over the rapid growth of retail loans, particularly personal loans and credit card receivables. These types of loans are unsecured, meaning they lack underlying assets that can be sold off in case of default. As a result, they pose a higher risk to banks and non-banking financial […]

RBI’s New Norms May Increase Personal Loan Costs: Compare Lowest Interest Rates from Top Lenders   Introduction: The Reserve Bank of India (RBI) recently implemented changes that impact personal loans. The risk weights for consumer credit exposure, specifically personal loans, have been raised by 25 percentage points to 125 percent. This update requires banks to hold more capital, resulting in increased capital costs for these loans. Both existing and new loans are affected by these […]