Entries by Staff

Changes in P2P Norms: Collapse of the marketplace model?

Vinod Kothari | finserv@vinodkothari.com Introduction The RBI’s 16th August 2024 changes in P2P Directions  may have been inspired by its supervisory observations, and comments by some observers and experts, but the likely impact of the changes may be to make this disintermediation model operationally tough to the extent of unviability.  The key spirit of the […]

Aligning Regulations: Harmonizing the Frameworks for HFCs and NBFCs

Team Finserv (finserv@vinodkothari.com) Vide notification dated August 12, 2024, RBI has amended certain regulations applicable to Housing Finance Companies, and NBFCs to enure harmonization between HFC Master Directions and SBR Master Directions. These amendments shall be effective from January 01, 2025. The following table contains a snapshot of the changes from all HFCs and NBFCs: […]

RBI Governor red-flags personal loans, top-up lending, once again

Vinod Kothari (finserv@vinodkothari.com) The RBI’s bi-monthly Monetary Policy review was accompanied by the Governor’s customary statement, dated 8th August, 2024, highlighting 4 areas of potential risks to financial stability. Two of these relate to uncollateralised or personal lending. The 4 red flags raised by the Governor are as follows. First, with alternative financial instruments being […]