The RBI increased risk weights on unsecured personal loans, credit cards, and lending to nonbank finance companies (NBFCs) by 25 percentage points on Thursday. S&P Global Ratings noted that the move will likely lead to higher lending rates, lower credit growth, and an increase in the need for capital raising among weak lenders.
The Reserve Bank of India is developing an innovative digital platform that will enable the smooth transmission of crucial digital data to lenders, facilitating effortless credit provision. The platform will have an open structure with APIs and standards allowing all participants in the financial sector to connect effortlessly via a plug and play model. The platform will be introduced as a pilot project with a measured approach regarding access to information providers and use cases.