RBI Allows Key Fact Statement Requirement To All Retail, MSME Term Loans

The Reserve Bank of India issued instructions on Monday extending the requirement of a key fact statement to all retail and MSME loans. Through this, the regulator aims to enhance transparency and reduce information asymmetry on financial products, if any. A KFS essentially comprises the important facts of a loan agreement, presented in simple and easy language. It is given to a borrower in a standardised format to help them make an informed decision.