Tag: RBI

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.

We presented detailed feedback on the Reserve Bank of India’s Discussion Paper on Review of Prudential Norms for Classification, Valuation and Operations of Investment Portfolio of Commercial Banks in the form of answers to the ten questions posed within the Discussion Paper.

In our response, we commend and highlight the more risk sensitive methodology and the corresponding disclosures outlined in the draft guidelines. However, we also point out that not including conduct risk under operational risk is a major lacuna.

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, based on our earlier comments on the draft guidelines, we analyse whether the highlighted issues have been addressed and also highlight few other potentially impactful changes that are contained in the new framework.

In this blog post, we answer the first two questions. In the next post, we shall present a principle-based approach that the RBI may adopt, thus answering the third question of how the current regulations should be amended or augmented to enhance their efficacy.

he microfinance movement in India is set to receive another dose of impetus with the Reserve Bank of India’s (RBI) recently released Consultative Document on Regulation of Microfinance in June 2021. Following the Malegam Committee Report, which is a decade old now, the current document looks to reassess and realign the priorities of the sector.

In this blog post, we present a summary of our response to the consultative document.

From a student perspective, there are several challenges associated with paying for any form of higher education, which requires a greater level of commitment in terms of cost.

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