Tag: NBFC

On 13 December 2024, the Ministry of Finance, Government of India (MoF) released the draft Banning of Unregulated Lending Activities (BULA) Act. This aligns with recommendations made in the Report of the Working Group on Digital Lending.

This study sought to understand the impact of the new regulations on the microfinance sector through the lens of different categories of stakeholders – customers, leadership at microfinance institutions (MFIs) and intermediating staff.

 Our response covers two themes:
Leading from a customer protection perspective, our comments emphasise the need for the prospective SRO to have duties towards the customers, at par with responsibilities towards the regulator.

Higher capital adequacy norms locking up funds

This blog is about a behavioural study conducted jointly by Dvara Research and Final Mile to uncover mental models that may nudge customers to disengage with consent screens.

In this post, we present our findings from our literature review based on which we conducted the behavioural study.

An RBI Working Group has suggested that lending service providers be disallowed from providing credit enhancements such as FLDG (first-loss-default-guarantee). However, a risk-proportionate regulation of FLDG could address its risks, while allowing the ecosystem to benefit from innovation.

The RBI’s Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs mandates a Core Banking Solution (CBS) for all NBFCs with more than 10 branches

In this post, we revisit the issue of over-indebtedness in microfinance and provide a set of suggestions to address them

In this blog post, we share our responses submitted to the RBI to the questions posed in the discussion paper