What changed
The RBI issued consolidated directions on credit facilities for commercial banks, replacing previous instructions and covering multiple areas including digital lending, gold and silver collateral, gold metal loans, microfinance, project finance, real estate, infrastructure, bill discounting, acquisition finance, overseas investments, loans against financial assets, NBFC finance, export credit, non-fund based facilities, and miscellaneous provisions.
What it means for you
These updates aim to promote responsible lending practices, enhance customer protection, and ensure that banks maintain prudent lending standards.
What you must do
- Review and update digital lending arrangements to meet new requirements
- Implement enhanced customer protection measures for gold and silver collateral loans
- Adhere to revised microfinance guidelines, including household income assessment and loan repayment limits
- Ensure compliance with updated project finance guidelines, including prudential conditions for sanction, disbursement, and monitoring
Who it affects
Commercial banks
What are the new requirements for digital lending arrangements?
Banks must ensure that digital lending arrangements meet new requirements, including general requirements, conduct and customer protection, technology and data requirements, and reporting of credit information and DLAs.
What are the revised guidelines for microfinance?
The revised guidelines include definitions of microfinance, assessment of household income, limit on loan repayment obligations of a household, and other provisions.
What are the updated project finance guidelines?
The updated guidelines include prudential conditions related to sanction, disbursement, and monitoring, as well as other provisions.