RBI: Increased scrutiny on top-up home loans along with retail loans, asked to rein in personal loan-giving institutions
The Reserve Bank of India (RBI) has increased monitoring of such loans by banks and NBFCs. Institutions providing personal loans have been asked to curb such loans where the risk is increasing.
Considering the risks, RBI has further increased the scrutiny of retail loans. Besides, top-up home loans have also been taken under scrutiny. According to sources related to the matter, the rapid increase in retail loans may increase risks in the financial system. To prevent this, the investigation has been expanded further.
The Reserve Bank of India (RBI) has increased monitoring of such loans by banks and NBFCs. Institutions providing personal loans have been asked to curb such loans where the risk is increasing. The RBI has taken several steps in six months to rein in some retail lending by banks and non-bank financial firms. In this, he has also been warned.
According to sources, RBI's stance has now changed. He had said in September that there was no risk to the financial system from excessive borrowing. But now the new investigation is a major blow to financial firms. The RBI is now examining four stages of supervision, a source said. This includes monitoring, warning, punishing and then taking action. RBI wants to allow institutions to take steps in the right direction based on specific warnings. But can also take action if needed.
