RBI flags unsecured loan caps, private credit links

Report signals changes on small biz loans, aggregators, notes high attrition

- Gopika Gopakumar

MUMBAI: India's banks and non-bank lenders are set to witness a slew of regulatory and supervisory changes in the year ahead, as the central bank pushes ahead with its recent measures to strengthen the banking system. The Reserve Bank of India (RBI) will consider removing prepayment penalties on floating rate term loans to small businesses; examine inter-linkages between private credit firms, banks and non-banks; and regulate payment aggregators engaged in point-of-sales terminals, the central bank's annual report on trends and progress in banking said.

RBI is also working on issuing final guidelines on the disclosure framework for climate-related financial risks, which will include scenario analysis and stress testing for these risks.