RBI Tightens Norms For Personal Loans, Credit Cards
NDTV
The central bank on Thursday increased risk weights on credit card exposures by 25 percentage points to 150% and 125% for banks and NBFCs, respectively.
The Reserve Bank Of India (RBI) on Thursday tightened norms related to unsecured lending portfolios of banks and non-banking financial companies (NBFCs) amid concerns of abnormally high growth in the loan categories.
Indian banks have seen a sharp rise in unsecured loans - mostly personal loans and credit cards - that has outpaced the overall bank credit growth of about 15% over the past year, catching the Reserve Bank of India's (RBI) attention.
The RBI increased the risk weights for banks and NBFCs - or the capital that banks need to set aside for every loan - by 25 percentage points to 125% on retail loans, it said in a release.
