Tag: Suitability

This Note has been prepared for regulated lending institutions who are in the business of
offering small-ticket short-term unsecured loans with equated monthly or weekly repayment
schedules, to low-income individuals and households in India.

The objectives of sustainable businesses are well-aligned with ensuring the financial health of households, and this holds true for all types of lending businesses.

Proceeds from the Suitability Workshop in Mumbai, Oct 2018.

In December 2014, the Reserve Bank of India published the Charter of Customer Rights as a commitment to protecting the interests of consumers of financial services.

In the previous blogpost we noted the gradual shift away from the buyer-beware standard in case law and policy regarding customers of financial products.

The shift towards suitability frameworks for consumer protection in India is a bold and important enhancement of existing financial consumer protection efforts.

The previous blog post in this series had presented some insights from our review of case law relating to financial products and services.

The RBI has published on its website the final Charter of Customer Rights for banking customers.

The current regulatory approach to customer protection in India can be divided into two complementary ex-ante approaches- mandated information disclosure, and financial literacy and education.

The Mor Committee Report offers a radical take on client protection, built around the concept of a legal right to suitability.