RBI Busts The Personal Loan Party

The RBI Governor has been trying to get the banks and NBFCs to go slow on personal loans but in vain.

Indian rupee bank notes. (Source: Usha Kunji/BQ Prime)

When caution and warning fail, action is needed. That’s what the RBI has done with the measures announced on Thursday evening to curb the relentless rise in consumer loans. The central bank has asked banks and NBFCs to make higher provisions to ring-fence the risk arising from unsecured personal loans and credit card loans. This measure is likely to have a system-wide impact.

Also Read: Bank, NBFC Stocks Drop As RBI Tightens Rules For Personal Loans

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WRITTEN BY
Vishwanath Nair
Vishwanath is Editor- Banking at NDTV Profit. He started working as a busin... more
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