Team Blitz India
NEW DELHI: The Reserve Bank of India (RBI) remains alert and committed to act early and decisively to prevent any buildup of risks, said Governor Shaktikanta Das in his foreword to the Financial Stability Report (FSR), released on December 28.
He said the recent implementation of macro prudential measures, specifically aimed at tempering lenders’ enthusiasm in specific segments of retail loans, reaffirmed the central bank’s commitment to financial stability while ensuring the continued availability of funds for the productive needs of the economy.
After issuing warnings to banks and non-banking financial companies (NBFCs) regarding the escalating levels of unsecured loans, including personal loans and credit card debt, on November 16, the regulator raised the risk weighting for such loans from 100 per cent to 125 per cent.
Additionally, a 25 percentage-point increase was implemented for the risk weighting of bank loans extended to higher-rated NBFCs.
