RBI Adds 19 Unauthorized Forex Trading Platforms to Alert List   On November 24, the Reserve Bank of India (RBI) updated its ‘Alert List’ of unauthorized forex trading platforms, adding 19 more entities to the list. This brings the total number of unauthorized platforms to 75. Among the newly added entities are FX SmartBull, Just Markets, and GoDo FX. Unauthorized Entities Violate FEMA and ETP Regulations According to the list, these entities are not authorized […]

Why is the RBI cautioning non-bank lenders?   Reserve Bank of India and Finance Minister advise caution to non-bank lenders In a recent statement, RBI Governor Shaktikanta Das emphasized the need for non-bank financial companies (NBFCs) to broaden their funding sources and reduce reliance on bank loans. This cautionary advice was echoed by Finance Minister Nirmala Sitharaman, urging NBFCs and small finance banks to be cautious in their lending practices. This article explores the reasons […]

How RBI’s New Regulations on Consumer Credit Will Affect Fintech Lenders   On November 25th, 2023, the Reserve Bank of India (RBI) announced that it would be tightening regulations for consumer credit by requiring banks and non-banking financial corporations (NBFCs) to assign a higher risk weight for unsecured personal loans. Though this change will not apply to housing loans, education loans, vehicle loans, and gold loans, these new regulations will still impact the fintech industry. […]

Penalties Soar as RBI Intensifies Scrutiny of Banks and NBFCs   The Reserve Bank of India (RBI) has ramped up its scrutiny of banks, non-banking financial companies (NBFCs), and other regulated entities, leading to a significant increase in penalties. According to data compiled by Mint, the RBI has imposed penalties amounting to ₹71.4 crore across 56 cases so far this year, compared to ₹26 crore in fines across 34 cases for the entire previous year. […]

After RBI tightens lending norms, will fintech see a slowdown? Experts explain   The Reserve Bank of India (RBI) recently released new guidelines requiring lending institutions to increase their risk weightage to cover unsecured loans disbursed by them. Industry experts predict that the fintech and NBFC segments in India will be severely affected by this directive.     Higher Risk Weightage As per the new guidelines, fintech platforms offering unsecured personal loans, consumer durable loans, […]