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 […]

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 […]

Measures Consumers Should Take in Light of RBI’s Order on Unsecured Loans   The Reserve Bank of India (RBI) has increased risk weights on unsecured consumer loans to address systemic risk. In light of this, consumers should exercise caution and practice financial prudence. Here’s what you need to know: Understanding RBI’s Increased Risk Weights on Unsecured Loans The RBI has recently raised the risk weights on unsecured consumer loans, including credit cards, by 25 percent […]

RBI Imposes Penalties on Citibank, Bank of Baroda, and Indian Overseas Bank for Non-Compliance   The Reserve Bank of India (RBI) has taken strict action against Citibank, Bank of Baroda, and Indian Overseas Bank for their failure to comply with regulatory norms. On November 24, the RBI imposed penalties totaling ₹10.34 crore on these banks due to their violations. Clarification from the RBI The RBI has clarified that the penalties are a result of deficiencies […]