RBI says these are precautionary measures, move not aimed at denying loans to the needy
RBI Governor Shaktikanta Das laid out various regulatory policy measures in progress for fintech, web-aggregation of loans, and connected lending.
According to an RBI statement, the MoU establishes a framework for the BoE to place reliance on RBI’s regulatory and supervisory activities while safeguarding UK financial stability.
The phased implementation of these measures underscores the regulators' commitment to maintaining financial stability while allowing financial institutions time to adapt to the new norms.
He says this is due to the strength of underlying macro-fundamentals of the economy and reassuring forex buffers
In another development, the Reserve Bank of India has asked Bajaj Finance, a non-banking finance company, to stop offering loans under two digital lending products.
Unsecured retail loans have been growing at over 20 per cent in many banks and NBFCs for a very long time.
The impact of the circular is limited to consumer loans. Housing loans, education loans, vehicle loans, and loans secured by gold and gold jewellery do not fall under its purview.
Even though oil prices have been declining for four consecutive months, central banks are in no mood to let go.
The Reserve Bank on Thursday tightened norms for consumer credit as it asked banks and NBFCs to assign a higher risk weight for unsecured personal loans.
The action was taken by the banking regulator due to non-adherence of the digital lending guidelines of RBI by the company.
Food inflation rate sees mixed trend, oil and fat prices fall 14%, pulse prices rise 19%
In the directive, which comes following the irregularities in some Kerala-based cooperative societies, RBI said “some co-operative societies are using the word ‘Bank’ in their names.
The CII Business Confidence Index has continued its upward trajectory as it rose to a three-quarter high of 67.1 in the second quarter as compared to 66.1 in the previous quarter.
Das said geopolitical uncertainties are the biggest risk to global growth at present, but India is better placed to handle it as compared to other countries.
Q2 results of top banks show high double-digit growth in personal, credit card loans
The banking regulator has also asked the credit bureaus to alert the customers when their credit reports are accessed by a third party.
Though near-term inflation may soften due to corrections in vegetable prices such as tomatoes, and the reduction in LPG prices, the trajectory, going forward, will depend on various factors.
Tokenisation replaces actual card details with a 16-digit code, which is a unique combination of the card, the merchant or entity accepting the token, and the device on which the payment is made.
The action, the RBI added, is based on certain material supervisory concerns observed in the manner of onboarding customers onto the application.