Entries by Team Finserv

Securitisation of MSME receivables in India

November 27, 2024 /0 Comments/in , /by

Vinod Kothari l finserv@vinodkothari.com There are considerable gaps in funding for SMEs: In India, the total addressable demand for external credit is estimated to be USD 173 billion[1] while the overall supply of finance from formal sources is estimated to be USD 441 trillion. The Expert Committee on Micro, Small and Medium Enterprises, constituted by […]

KYC Amendments clarify on one customer one KYC, among others

November 11, 2024 /0 Comments/in /by

– Aanchal Kaur Nagpal, Senior Manager & Harshita Malik, Executive | finserv@vinodkothari.com The KYC Directions are one of the most operationally detailed and challenging guidelines issued by RBI and quite notably, a significant area where financial entities face RBI penalties and action. One of the major pain points for these institutions is repetitive KYC of […]

Clearing the fog on applicability of SBR norms

October 17, 2024 /0 Comments/in , , /by

Streamlined Regulatory Framework for CICs and HFCs – Qasim Saif | AVP | qasim@vinodkothari.com On October 22, 2021, the RBI introduced the Scale-Based Regulation (SBR) framework for NBFCs through the circular titled “A Revised Regulatory Framework for NBFCs” (‘SBR Circular’)[1]. This framework applied to all NBFCs, including Core Investment Companies (CICs) and Housing Finance Companies […]

Surging gold loan business sets off RBI alarm

October 1, 2024 /0 Comments/in , , /by

Several practices in gold lending pointed by supervisor; 3 months’ time to mend ways – Team Finserv (finserv@vinodkothari.com)  The Reserve Bank of India (‘RBI’) issued a notification dated September 30, 2024[1] raising concerns on the irregular practices observed in the grant of loans against pledge of gold ornaments and jewellery.  The RBI’s comprehensive review has […]

Identifying the Contours of a Lending Marketplace

September 13, 2024 /0 Comments/in , , , /by

Aditya Iyer l finserv@vinodkothari.com Background The concept of a marketplace, i.e a platform where buyers and sellers meet, appears to have existed since antiquity and is one of the defining features of evolved commerce in any particular civilization (e.g the Middle Eastern and Persian ‘Bazaar’, the Ancient Greek ‘Agora’, the Silk Road, ‘Mandis’ in India, […]

Survival at Stake? The impact of RBI’s Norms on P2P Lending Platforms 

August 17, 2024 /0 Comments/in , , /by

Dayita Kanodia and Manisha Ghosh l finserv@vinodkothari.com Introduction RBI on August 16, 2024 has issued a notification for the review and modification of Master Direction – Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 (‘Directions’) for platforms acting as intermediaries and providing an online marketplace for lending between peers.  The […]