The proposed stricter lending criteria, with additional provisioning, are aimed at preventing accounting shocks but could potentially hurt balance sheets of these entities and exert pressure on their valuation multiples, analysts and economists said.
Last November, the Reserve Bank of India (RBI) heightened risk weights on bank exposures to NBFCs by 25 percentage points, necessitating varied funding strategies beyond bank reliance.
According to CareEdge Ratings, gross bank credit offtake showed a year-on-year increase of 20.2 per cent in March 2024, attributed largely to the merger between HDFC Bank and HDFC Ltd.
Watch this quick conversation with Dr. Sathyan David, Former CGM, RBI where he talks about the evolving regulatory environment for NBFCs in India and weather these non-banks are still struggling with the ‘Shadow Bank’ tagline.
When a loan gets rejected especially due to a low credit score, it is important that they are aware of the various ways to build a healthy credit profile. There are companies across the country who consciously work towards this not just to help the individuals but to help build the nation at large.
Personal loan origination volumes surged by 22.3% year-on-year during the festive season from October to December despite the RBI raising risk weights on consumer loans.
The Reserve Bank on Tuesday updated its "guidance note" on operational risk management for the financial sector, and also extended it to the NBFCs, including housing finance companies.
The Reserve Bank on Tuesday updated its "guidance note" on operational risk management for the financial sector, and also extended it to the NBFCs, including housing finance companies. The 2005 'Guidance Note on Management of Operational Risk' covered only commercial banks.
A lack of clarity surrounding the interchange fee structure and lower adoption rates among smaller merchants have hindered the uptake of credit transactions through the UPI, according to industry experts.
RBI's ban on DLG for P2P platforms reshapes industry operations, impacting prominent startups. Regulator's actions aim to bolster governance but may raise customer acquisition costs and deter investors due to increased risks.
The Reserve Bank of India has come across instances of lenders resorting to certain unfair practices in charging of interest. What do RBI’s latest guidelines and instructions to banks and NBFCs mean for loan borrowers? We explain the math and answer your common questions:
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