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 […]

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. […]