Reserve Bank of India

Fintech / Regtech

RBI Orders Banks, NBFCs to Restrict Access to Credit Data

By Editors | 24/09/2019

Financial institutions in India are known to be giving fintech firms and institutional agents direct access to data from credit bureaus, without customer consent.

Market Infrastructure

RBI Proposes to Directly Regulate Payment Gateways, Aggregators

By Editors | 19/09/2019

The paper proposes that payment gateways and payment aggregators be required to have a minimum net-worth of 1 billion rupees, among other requirements.

Capital / Liquidity

RBI Increases Bank Exposure Limit to NBFCs

By Editors | 17/09/2019

The move aligns bank exposure limits for NBFCs with limits applicable for other types of counterparties, but Fitch says it is unlikely to lead to significant credit flows to the sector.

Capital / Liquidity

RBI Lowers Risk Weight for Consumer Loans

By Editors | 16/09/2019

The move will reduce the amount of capital banks need to set aside as provisioning for consumer loans, effectively reducing the cost of lending.

AML / KYC

RBI Orders Banks to Review Controls on Internal Accounts

By Editors | 16/09/2019

Transitory accounts at bank branches are being used to provide unauthorised overdrafts to avoid default classification on loans, and to mask unexplained cash deposits.

Capital / Liquidity

RBI Proposes New Rules for Small Finance Bank Licensing

By Editors | 16/09/2019

Under the new guidelines, payment banks, NBFCs, microfinance institutions and local area banks will be able to convert into small finance banks.

Capital / Liquidity

Global Banks’ India Business Impacted by Large Exposures Rules

By Editors | 13/09/2019

Foreign banks have to maintain sufficient capital in their India entities to increase their exposure to the country, rather than relying on guarantees from their overseas headquarters.

Securities / Derivatives

RBI Panel Offers Path to Develop Home Loan Securitisation Market

By Editors | 10/09/2019

A new intermediary should be created to standardise the underlying mortgage loans, underwriting guidelines and loan servicing standards, the panel says.

RBI Mandates External Benchmarking for Loans from October

By Editors | 09/09/2019

Banks must link interest rates for retail and micro and small enterprise loans to the RBI’s benchmark repo rate, the 3- or 6-month treasury yield, or any other FIBIL benchmark.