"In general, we have seen that the guidelines on key fact statements are followed, but some banks and NBFCs still charge charges etc. which are not specified or disclosed in the statement," Das said at a press conference after the Monetary Policy Committee. is not done." meeting.
"It has also been observed in some micro-finance institutions and NBFCs that interest rates on small value loans are high and appear to be usurious," the RBI governor said.
The regulatory freedom enjoyed by banks and NBFCs with respect to interest rates and charges should be used judiciously to ensure fair and transparent pricing of products and services. He said the Reserve Bank continues its constructive partnership with such financial institutions to protect the interests of customers and ensure overall financial stability.
Das also said that in November last year, the RBI had flagged some concerns over the excessive growth in unsecured retail loans and excessive dependence of NBFCs on bank funding. Recent data shows that there has been some decline in these loans and advances, he said.
“We are closely monitoring incoming data to determine whether further measures are necessary. The boards and top management of banks and NBFCs should ensure that the risk limits and exposures for each line of business are kept well within their respective risk appetite framework,” he said.
The RBI Governor also observed that the persistent gap between credit and deposit growth rates has forced banks' boards to re-strategize their business plans.
A prudent balance has to be maintained between assets and liabilities,” he said.
"It has also been observed in some micro-finance institutions and NBFCs that interest rates on small value loans are high and appear to be usurious," the RBI governor said.
The regulatory freedom enjoyed by banks and NBFCs with respect to interest rates and charges should be used judiciously to ensure fair and transparent pricing of products and services. He said the Reserve Bank continues its constructive partnership with such financial institutions to protect the interests of customers and ensure overall financial stability.
Das also said that in November last year, the RBI had flagged some concerns over the excessive growth in unsecured retail loans and excessive dependence of NBFCs on bank funding. Recent data shows that there has been some decline in these loans and advances, he said.
“We are closely monitoring incoming data to determine whether further measures are necessary. The boards and top management of banks and NBFCs should ensure that the risk limits and exposures for each line of business are kept well within their respective risk appetite framework,” he said.
The RBI Governor also observed that the persistent gap between credit and deposit growth rates has forced banks' boards to re-strategize their business plans.
A prudent balance has to be maintained between assets and liabilities,” he said.
