RBI raises red flag on increasing personal loans
Increased risk weights on bank lending to NBFCs, Sectoral exposure limits among protective measures
– Vinod Kothari | vinod@vinodkothari.com
One may call it insecure about unsecured lending; the central bank has taken what in our view is a bold and timely measure, to rein in unsecured lending.
Identifying a notable surge in specific segments of consumer credit, the RBI had recently met senior bankers. The latter had reportedly assured the central bank that things are under control. However, apparently, these assurances have failed to assuage the RBI’s view. Vide its notification dated November 16, 2023, the RBI has taken several mitigating measures.
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