Microfinance lending limit raised to Rs 1.25 Lakh
5 years, 5 months ago

Microfinance lending limit raised to Rs 1.25 Lakh

Deccan Chronicle  

Chennai: The RBI has increased the household income limit as well as the lending limit per borrower for NBFC-MFIs, thus providing a potential for around 25 per cent incremental growth. The household income limit for borrowers of NBFC-MFIs has been increased from the current level of Rs 1 lakh for rural areas and Rs 1.60 lakh for urban/semi urban areas to Rs 1.25 lakh and Rs 2 lakh, respectively. Further, the lending limit per borrower has been raised from Rs 1 lakh to Rs 1.25 lakh. “This is a good move reflecting the change in household income since 2015 and allows clients to avail a higher loan amount from RBI regulated financial institutions.

Rbi Lakh Nbfc Mfi  income  household  lending  nbfcmfis  microfinance  125  borrower  providing  raised  rbi  lakh  limit  rs

History of this topic

NBFC sector strengthens with RBIs positive stance and rate cut support for growth: Jefferies
1 week, 2 days ago

NBFC sector strengthens with RBIs positive stance and rate cut support for growth: Jefferies

Live Mint  

New Delhi, March 15 : The fundamentals of Non-Banking Financial Companies are showing signs of improvement as macroeconomic challenges ease and the Reserve Bank of India adopts a more supportive stance, according to Jefferies. Additionally, a recent 25-basis-point interest rate cut, along with potential future cuts, is expected to support net interest margins across the sector. NBFC exposure to MFI …

India’s Top Banker Must Ease Credit, But Not Too Much
2 weeks, 4 days ago

India’s Top Banker Must Ease Credit, But Not Too Much

Live Mint  

-- Sanjay Malhotra, the new Reserve Bank of India governor, is right to unwind some of his predecessor’s hawkish controls on a runaway consumer-credit boom. Last year, there were 122 million of such small-ticket loans, accounting for 88% of all personal credit origination, according to Blume Ventures, a Mumbai-based early stage venture-capital investor that releases a popular annual report. The …

The huge burden of small loans in Karnataka
3 weeks, 4 days ago

The huge burden of small loans in Karnataka

The Hindu  

Twenty-five-year-old Madhuri L., mother of a baby barely two months old, taking shelter under the stairs of a private building in the dry winter month of January at Tarihal village in Belagavi in north Karnataka became one of the defining images of the plight of those who borrowed from microfinance institutions and defaulted on repayment. As the lending increased with …

NBFCs gain fresh momentum as RBI eases bank lending norms
Trending News
3 weeks, 4 days ago

NBFCs gain fresh momentum as RBI eases bank lending norms

Live Mint  

The business environment is set to turn favourable for non-banking financial companies, thanks to two recent developments. A lower interest rate cycle benefits NBFCs relative to banks, as it erodes banks’ cost advantage from low-cost current and savings account deposits, allowing NBFCs to compete more effectively. Read this | Lower capital requirements for bank loans to NBFCs to ease funding …

Lower capital requirements for bank loans to NBFCs to ease funding woes
3 weeks, 5 days ago

Lower capital requirements for bank loans to NBFCs to ease funding woes

Live Mint  

The Reserve Bank of India’s decision to ease rules on bank loans to non-banking financial companies has been driven by a slowdown in credit flow to these entities, which have been facing a funding crunch amid systemic liquidity deficit and rising asset quality stress in small-ticket and microfinance loans, analysts said. The central bank had in November 2023 hiked risk …

RBI eases lending rules for small borrowers and NBFCs. Here's what it means
3 weeks, 6 days ago

RBI eases lending rules for small borrowers and NBFCs. Here's what it means

India Today  

The Reserve Bank of India has eased the stricter loan rules for small borrowers and non-bank lenders at a time when the economy is showing signs of slowing down. The RBI has also put on hold its earlier proposals to increase the capital that banks must set aside for new project loans and the liquidity they need to maintain for …

RBI reduces risk weights on bank loans to NBFCs, MFIs
Trending News
3 weeks, 6 days ago

RBI reduces risk weights on bank loans to NBFCs, MFIs

Live Mint  

Amid cries of deficit liquidity in the banking system and funding crunch for several small lenders, the Reserve Bank of India on Tuesday reduced the risk weights on bank loans to non-banking finance companies and microfinance loans. The RBI’s decision to roll back its November 2023 hike in risk weights for NBFC loans has been driven by the significant slowdown …

Delinquencies in micro loans surge three-fold
3 weeks, 6 days ago

Delinquencies in micro loans surge three-fold

Deccan Chronicle  

Chennai: Micro loan disbursements in the December quarter de-grew by 20 per cent even as the delinquencies shot up three-fold against the same last year. Similarly, banks saw delinquencies rise from 2.3 per cent to 6.8 per cent, small finance banks 2.8 per cent to 7.2 per cent, and NBFCs 1 per cent 3.7 per cent, according to MFIN. NBFC-MFIs …

MFI portfolio declines, bad assets spike in Sept qtr: Report
2 months, 2 weeks ago

MFI portfolio declines, bad assets spike in Sept qtr: Report

Live Mint  

Mumbai, Jan 8 Microlending outstandings in the system reduced 4.3 per cent to ₹4.14 lakh crore in the September quarter as lenders adopted a cautious stance amid deteriorating asset quality, a report said on Wednesday. Loans unpaid for 1-30 days increased to 2.1 per cent from the 1.2 per cent in June, while the ones unpaid for 31-180 days witnessed …

Microfinance self-regulator defers capping lenders per borrower to 1 April
2 months, 3 weeks ago

Microfinance self-regulator defers capping lenders per borrower to 1 April

Live Mint  

Mumbai: Microfinance Industry Network, the self-regulatory organization for the sector, has deferred the implementation of limiting the number of lenders to three per borrower to 1 April, giving lenders more time to manage stress and delinquencies, according to two persons aware of the matter. "MFI players wanted to end the year on a good note and hence they felt that …

Share of stressed MFI assets, borrower indebtedness rises in H1: RBI report
2 months, 3 weeks ago

Share of stressed MFI assets, borrower indebtedness rises in H1: RBI report

Live Mint  

Mumbai: The share of stressed loans has risen in the microfinance portfolios of Indian lenders across ticket sizes, adding to concerns about the sector. In the first half of FY25, impairment among borrowers who had availed loans from multiple lenders and those with higher credit exposure remained high, reflecting the rise in borrower indebtedness, the report said. In the quarter …

RBI Flags Risks as Share of Borrowers Availing Multiple Loans Rise
2 months, 3 weeks ago

RBI Flags Risks as Share of Borrowers Availing Multiple Loans Rise

Deccan Chronicle  

Mumbai: The Reserve Bank of India on Monday flagged risks in microfinance and consumer credit, which constitute 15% of the total scheduled commercial bank loans, with delinquency rates reaching 8.2% in small personal loans and 3.8–4.3% in microfinance. The central bank, in its December 2024 Financial Stability Report released on Monday, noted that borrowers who had availed loans from multiple …

RBI Raises Collateral-Free Loan Limit To Rs 2 Lakh For Farmers Starting Jan 1, 2025
Trending News
3 months, 1 week ago

RBI Raises Collateral-Free Loan Limit To Rs 2 Lakh For Farmers Starting Jan 1, 2025

ABP News  

The Reserve Bank of India has raised the collateral-free loan limit for farmers from Rs 1.6 lakh to Rs 2 lakh, effective January 1, 2025. This decision is designed to provide better financial support to small and marginal farmers facing increasing input costs. By addressing inflationary pressures on farming input costs, this measure seeks to ease the financial burden on …

RBI raises collateral-free loan limit to ₹2 lakh for farmers amid rising costs
3 months, 1 week ago

RBI raises collateral-free loan limit to ₹2 lakh for farmers amid rising costs

Live Mint  

To ease financial pressures on farmers and address escalating agricultural input costs, the Reserve Bank of India has raised the collateral-free agricultural loan limit from ₹1.6 lakh to ₹2 lakh. By increasing the loan ceiling, the RBI aims to bolster credit access without the burden of collateral, offering a critical lifeline to farmers with limited assets. Read this | Land …

Microlenders wake up to hangover after credit party
3 months, 3 weeks ago

Microlenders wake up to hangover after credit party

Live Mint  

Mumbai/Bengaluru: Microlenders that splashed out money to indebted individuals are now struggling to get it back, raising concerns that payment delays could show up on balance sheets soon. Leading microfinance companies including CreditAccess Grameen, Fusion Finance and Equitas Small Finance Bank have warned that many of their customers may be over-leveraged, after discovering that some have four or more active …

NBFC-MFI growth to remain muted for this year and next
4 months ago

NBFC-MFI growth to remain muted for this year and next

Deccan Chronicle  

Chennai: Micro loans by non-banking finance companies are likely to see a flat growth or decline in FY25 against 28 per cent growth in FY24. The Q2 results highlight the added stress for the sector, due to overleveraging and a cyclical slowdown in disbursements, both accentuating asset quality challenges. But in FY25, disbursements could be impacted as funding from lenders …

Microfinance meltdown: Five stocks that could come out on top
4 months ago

Microfinance meltdown: Five stocks that could come out on top

Live Mint  

The microfinance sector is facing a severe downturn, with every small finance bank and non-banking finance company involved in microlending seeing declines of 30-50%. Equitas Small Finance Bank estimates that around 50% of loans overdue by 90 days eventually become NPAs, though this figure varies across lenders. Equitas Small Finance Bank, Ujjivan Small Finance Bank, CreditAccess Grameen Ltd, and Arman …

Ujjivan to Sell Rs 270 Cr of Bad MFI Loans
4 months, 1 week ago

Ujjivan to Sell Rs 270 Cr of Bad MFI Loans

Deccan Chronicle  

Mumbai: Ujjivan Small Finance Bank on Friday said it is looking to sell Rs 270 crore worth of non-performing and written-off micro-banking loans to asset reconstruction companies. Of the Rs 270 crore worth of loans, around Rs 208 crore are non-performing loans, and the remaining Rs 62.36 crore worth of loans have been written off by the bank. In the …

Microfinance risk: Small loans can spell big trouble for Indian banks
4 months, 1 week ago

Microfinance risk: Small loans can spell big trouble for Indian banks

Live Mint  

Once bitten twice shy" goes the old adage. Driven perhaps by the lack of credit demand from corporates, a boom in retail credit, an eagerness to bridge the last- mile gap in credit delivery and pressure to achieve priority-sector lending targets, banks seem to have lowered their guard and gone overboard in extending such loans. To its credit, the Reserve …

Microfinance sector heading for a bumpy ride as bad loans mount
6 months, 3 weeks ago

Microfinance sector heading for a bumpy ride as bad loans mount

New Indian Express  

MUMBAI: The microfinance sector is headed for a bumpy ride with overleveraged borrowers missing installments, forcing the lenders to go slow on new loan sales in the first quarter of the current fiscal. In the June quarter, MFIs saw their collections falling, leading to higher delinquencies as well as a slowdown in the growth of assets under management, which is …

MFI Risks Rise with Overleveraging in Bihar, UP
6 months, 3 weeks ago

MFI Risks Rise with Overleveraging in Bihar, UP

Deccan Chronicle  

Chennai: Increasing borrower leverage, especially in states like Bihar and Uttar Pradesh, is a key concern for the micro-finance segment. For MFI borrowers, the check on household leverage becomes paramount, as improved availability of loans from MFI players, government loans, Kisan Credit Card loans, mudra loans, gold loans, and other fintech loans could overleverage the end MFI borrower, impacting repayment …

NBFCs Face Funding Strains, Slower Growth Ahead
7 months ago

NBFCs Face Funding Strains, Slower Growth Ahead

Deccan Chronicle  

Mumbai: Non-banking financial companies are likely to face funding challenges that could result in slower growth compared to the robust expansion seen in the last two fiscals according to rating agency ICRA Ltd. “The banking sector, a key lender to the NBFC segment, is expected to register an overall credit expansion of around 12 per cent in FY2025, resulting in …

How New Mudra Loan Limit Of Rs 20 Lakh Will Support MSMEs, Who Can Avail The Scheme
8 months ago

How New Mudra Loan Limit Of Rs 20 Lakh Will Support MSMEs, Who Can Avail The Scheme

News 18  

In the Budget 2024, Micro, Small, and Medium Enterprises will now be able avail loans of up to Rs 20 lakh instead of the current Rs 10 lakh under the Mudra scheme, finance minister Nirmala Sitharaman said on Tuesday. During the interim budget presentation earlier this year, the government extended 43 crore loans aggregating to Rs 22.5 lakh crore under …

NBFC lenders find borrowing a costly affair
11 months, 1 week ago

NBFC lenders find borrowing a costly affair

Live Mint  

MUMBAI : Non-bank lenders are struggling through a spike in borrowing costs as banks have become cautious in lending to them following a regulatory warning, forcing these companies to diversify their money sources. The Reserve Bank of India in November increased the risk weights on NBFCs by 25 percentage points, making their cost of borrowing from banks costlier by 30-50 …

Household income limit for micro loans should be raised to ₹5 lakh: NBFCs
1 year ago

Household income limit for micro loans should be raised to ₹5 lakh: NBFCs

Live Mint  

Non-banking finance companies and microfinance institutions want the Reserve Bank of India to reexamine the threshold relating to annual household income limit for giving micro loans. The last time criteria relating to the annual household income limit for giving microloans to individual borrowers was revised was in 2022, when it was upped from ₹1.25 lakh in rural areas and ₹2 …

Loan Ticket Size of MSMEs Rise After Pandemic
1 year, 1 month ago

Loan Ticket Size of MSMEs Rise After Pandemic

Deccan Chronicle  

Chennai: Post-Covid, the ticket size of loans by lenders to MSMEs has increased while approval rates have fallen. The average ticket size of loans offered by public sector banks has risen from Rs 12.6 lakh to Rs 15.1 lakh between Q2, 2022 to Q4, 2023. Approval rates in PSU banks for medium-risk companies are down from 58 per cent in …

More fintech NBFCs tap debt markets for expansion
1 year, 2 months ago

More fintech NBFCs tap debt markets for expansion

Live Mint  

MUMBAI : Fintech startups operating as non-banking financial companies are increasingly turning to the bond market to secure funds for expansions due to the rising costs of bank borrowing. JM Financial reported that Fintech NBFCs raised ₹1,818 crore from the bond market in 2023, up from just ₹450 crore in 2022. “With demand for credit picking up, bank credit getting …

Govt explores steps to boost affordable NBFC loans
1 year, 4 months ago

Govt explores steps to boost affordable NBFC loans

Live Mint  

The Centre is exploring options such as increasing the deposit acceptance limit for eligible non-banking finance companies, introducing deposit insurance and creating a specific liquidity window for NBFCs, according to two officials. The goal is to lower funding costs, enabling NBFCs to offer loans to crucial sectors such as agriculture and micro, small, and medium enterprises, at more affordable interest …

Microfinance portfolio grows 21% in FY23, shows Sa-Dhan data
1 year, 9 months ago

Microfinance portfolio grows 21% in FY23, shows Sa-Dhan data

Live Mint  

India’s microfinance sector has recorded an overall portfolio growth of 21% during 2022-23, as per data from industry body Sa-Dhan. Except for banks, all other institutions recorded double-digit growth, with non-banking financial companies recording a 49% growth and NBFC MFIs growing 37%. According to Jiji Mammen, executive director and chief executive of Sa-Dhan, the microfinance sector has shown significant performance …

Budget 2023: Centre hikes farm credit target by 11% to Rs 20 lakh crore for FY24
2 years, 1 month ago

Budget 2023: Centre hikes farm credit target by 11% to Rs 20 lakh crore for FY24

Firstpost  

Among other big ticket announcements for agriculture and allied sectors, Nirmala Sitharaman – in her budget speech – said the Centre will launch a new sub-scheme of Pradhan Mantri Matsya Sampada Yojana with an investment of Rs 6,000 crore to improve value chain efficiencies and fisheries market New Delhi: The Centre on Wednesday announced an 11 per cent hike in …

Microfinance lenders go for secured loans to diversify risk
2 years, 3 months ago

Microfinance lenders go for secured loans to diversify risk

Live Mint  

A clutch of microfinanciers is venturing into secured asset classes such as mortgages and gold loans to diversify their portfolio and balance the risk of unsecured microlending with loans that require collateral. The strategy change took shape after a Reserve Bank of India circular in March allowed microfinance institutions to lend 25% of their total assets in non-microfinance loans. Mid-caps, …

Microfinance lenders should not charge usurious rates of interest, RBI says in revised norms for the sector
3 years ago

Microfinance lenders should not charge usurious rates of interest, RBI says in revised norms for the sector

The Hindu  

The Reserve Bank of India on Monday allowed microfinance institutions the freedom to set interest rates they charge borrowers, with a caveat that the rates should not be usurious. As per the revised norms, regulated entities should put in place a board-approved policy regarding pricing of microfinance loans, a ceiling on interest rate and all other charges applicable to microfinance …

Union Budget 2022-23: Covid-hit microfinance industry seeks higher credit guarantee scheme
3 years, 2 months ago

Union Budget 2022-23: Covid-hit microfinance industry seeks higher credit guarantee scheme

India Today  

The Covid-19 hit microfinance sector has urged Finance Minister Nirmala Sitharaman to increase the limit of credit guarantee scheme in the upcoming budget for 2022-23. In the budget representation to the ministry, the self regulatory body of MFIs stated the sector has been facing a few challenges in terms of higher credit costs and access to low-cost long term funds. …

RBI microfinance proposals that are anti-poor
3 years, 5 months ago

RBI microfinance proposals that are anti-poor

The Hindu  

In June 2021, the Reserve Bank of India published a “ Consultative Document on Regulation of Microfinance ”. The recommendations The consultative document recommends that the current ceiling on rate of interest charged by non-banking finance company-microfinance institutions or regulated private microfinance companies needs to be done away with, as it is biased against one lender among the many. Not …

MFIs may get to set interest rates
3 years, 9 months ago

MFIs may get to set interest rates

Hindustan Times  

Microfinance institutions may get freedom to set interest rates guided by a board-approved policy, under a Reserve Bank of India proposal to review the regulatory framework governing them. The proposal, if implemented, will end the existing regulatory cap on MFI interest rates. However, while doing so, they should ensure usurious interest rates are not charged,” The RBI said in its …

RBI Loan Restructuring of up to Rs 50 Cr for MSMEs: Eligibility, Other Criteria
3 years, 9 months ago

RBI Loan Restructuring of up to Rs 50 Cr for MSMEs: Eligibility, Other Criteria

News 18  

In a bid to provide relief amid the second wave of COVID-19 pandemic, Reserve Bank of India announced doubling of loan restructuring limits for micro, small and medium enterprises and small borrowers to Rs 50 crore. “With a view to enabling a larger set of borrowers to avail of the benefits under Resolution Framework 2.0, it has been decided to …

Bank Lending to NBFCs Jumps 190 Basis Points to 8.8% Since Sept 2018
4 years, 7 months ago

Bank Lending to NBFCs Jumps 190 Basis Points to 8.8% Since Sept 2018

News 18  

Amid continuing calls for more bank loans to non-banking lenders, the latest data showed that banks have already been lending more to them increasing their overall exposure to NBFCs by 190 basis points to 8.8 per cent between September 2018 and June 2020, according to a report by CARE Rating. In absolute terms, banks' outstanding to NBFCs saw a huge …

Govt Widens Ambit of Rs 3 Lakh Crore MSME Credit Guarantee Scheme
4 years, 7 months ago

Govt Widens Ambit of Rs 3 Lakh Crore MSME Credit Guarantee Scheme

News 18  

The government on Saturday widened the scope of the Rs 3-lakh crore MSME credit guarantee scheme by doubling the upper ceiling of loans outstanding to Rs 50 crore and including certain individual loans given to professionals like doctors, lawyers and chartered accountants for business purposes under its ambit. The finance minister said that the intended changes are likely to expand …

Finance Minister Nirmala Sitharaman postpones meet with PSB chiefs to later this week
4 years, 10 months ago

Finance Minister Nirmala Sitharaman postpones meet with PSB chiefs to later this week

Firstpost  

Public sector banks have sanctioned loans worth Rs 42,000 crore to the MSME sector and corporates since the start of the lockdown. New Delhi: Finance Minister Nirmala Sitharaman review meeting with CEOs of public sector banks scheduled for Monday afternoon has been postponed. @FinMinIndia — Nirmala Sitharaman Office May 9, 2020 Sitharaman also said state-owned banks have sanctioned loans worth …

Coronavirus Outbreak: SIDBI to provide 90-day term loans to banks, NBFCs, MFIs for onward lending to MSMEs
4 years, 11 months ago

Coronavirus Outbreak: SIDBI to provide 90-day term loans to banks, NBFCs, MFIs for onward lending to MSMEs

Firstpost  

SIDBI will offer liquidity to banks, NBFCs and MFIs as term loans for a tenor of 90 days and for a maximum period of one year, Mumbai: Small Industries Development Bank of India on Thursday said it will provide special liquidity to banks, non-banking financial companies and microfinance institutions for on-lending to micro, small and medium enterprises that are affected …

Home, car loans will get cheaper
5 years, 1 month ago

Home, car loans will get cheaper

Deccan Chronicle  

Mumbai: As expected, the Monetary Policy Committee of the Reserve Bank of India on Thursday unanimously voted to keep the policy repo rate unchan-ged even as predicting a higher inflation at 6.5 per cent in April-June quarter and a lower economic growth at six per cent in the next fiscal. In a bid to lower interest rates for housing, auto, …

Opinion | Budget 2020 wish list: More freedom for NBFCs to revive demand
5 years, 2 months ago

Opinion | Budget 2020 wish list: More freedom for NBFCs to revive demand

Live Mint  

Non-banking finance companies play an important role in providing credit access to businesses and individuals across the spectrum. The increase in the ₹2 lakh tax rebate on housing loan interest rates under Section 24 of the Income Tax Act, will encourage demand for housing, especially in the affordable and mid-segment categories. Allow strong NBFCs/ HFCs to access public deposits: Large …

MFIs raise Rs 14,000 crore via securitisation in H1
5 years, 3 months ago

MFIs raise Rs 14,000 crore via securitisation in H1

Deccan Chronicle  

Chennai: The liquidity concerns in the market are increasingly driving NBFC-MFIs into securitisation. NBFC-MFIs raised Rs 14,000 crore through securitisation in the first half of the fiscal, which was double the amount raised in first half of last year. As per data collated by credit rater Icra, NBFC-MFIs tapped the securitization market to raise around Rs 14,000 crore in H1 …

Slower growth seen for NBFC-MFIs
5 years, 4 months ago

Slower growth seen for NBFC-MFIs

Deccan Chronicle  

Chennai: Despite RBI increasing the lending limit for individual borrowers and households, industry observers project a slower growth for micro finance institutions in FY20 compared to FY19. Though growth could pick up in the subsequent quarters, it will limit the yearly growth below last year’s levels,” said Rajat Bahl, Chief Analytical Officer and Head-Financial Institutions, Brickwork Ratings. The YoY growth …

RBI increases lending limit of MFIs to ₹1.25 lakh
5 years, 5 months ago

RBI increases lending limit of MFIs to ₹1.25 lakh

The Hindu  

The Reserve Bank of India has raised the lending cap for microfinance institutions to ₹1.25 lakh, against the earlier limit of ₹1 lakh, to improve credit availability in rural and semi-urban areas. It has also been decided to “increase the household income limit for borrowers of non-banking financial companies-micro finance institutions from the current level of ₹1 lakh for rural …

FM Nirmala Sitharaman directs banks, NBFCs to focus on increasing credit outgo in 400 districts
5 years, 6 months ago

FM Nirmala Sitharaman directs banks, NBFCs to focus on increasing credit outgo in 400 districts

Live Mint  

To increase credit disbursement during the ongoing festive season, finance minister Nirmala Sitharaman on Thursday directed commercial banks and non-banking financial companies to reach out to customers across 400 districts in two phases before 15 October. Besides, Sitharaman asked banks not to declare stressed assets of MSMEs as non-performing asset till 31 March 2020, invoking the existing guidelines of the …

Tracking India's economic slowdown: Narendra Modi govt has a herculean task ahead to pep up growth with dying private investment
5 years, 7 months ago

Tracking India's economic slowdown: Narendra Modi govt has a herculean task ahead to pep up growth with dying private investment

Firstpost  

There is more than enough evidence of the economy slowing down Editor’s note: This is the third part of a series in which Firstpost’s columnists analyse the ongoing economic slowdown and offer solutions. Between April 2014 and March 2019, the retail loans of banks went up by 120 percent. Between April 2009 and March 2014, the five-year period before the …

Bank can lend more to Non Banking Finance Companies
5 years, 7 months ago

Bank can lend more to Non Banking Finance Companies

Deccan Chronicle  

Mumbai: To enhance credit flow to the crisis hit Non Banking Finance Companies sector, the Reserve Bank of India on Wednesday announced a slew of measures. On the same lines, in order to boost consumption, the central bank also reduced the risk weights for consumer loans such as personal loans, auto loans to 100 per cent from 125 per cent. …

RBI gives priority sector tag for specified bank loans to NBFCs
5 years, 7 months ago

RBI gives priority sector tag for specified bank loans to NBFCs

Live Mint  

New Delhi: The Reserve Bank of India has given priority sector tag to bank loans extended to registered non-bank lenders for financing agriculture, small businesses and home buyers within specified limits. The RBI said in a statement on developmental and regulatory policies as part of its third bi-monthly monetary policy review this fiscal that it has accorded priority sector status …

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