The regulator introduces uniform concentration risk rules for NBFCs, setting clear exposure caps and governance standards to prevent excessive borrower or sectoral risk.
The Directions standardise income recognition and NPA identification with strict, day-end based timelines. The key takeaway is faster, more transparent classification without reliance on security or net worth.
Rural co-operative banks must now report suit-filed and non-suit large defaulter accounts to credit bureaus every month. The ruling strengthens transparency and early risk detection for lenders.
The issue was whether outsourcing IT services can dilute regulatory responsibility. RBI clarified that CICs, their boards, and management remain fully accountable despite third-party arrangements.
While restructuring remains prohibited for fraud and wilful default, settlements are permitted to maximise recovery. The ruling balances recovery speed with safeguards and ongoing penal action.
Individuals are now entitled to one free full credit report each year with calibrated credit scores. This improves transparency and empowers consumers to monitor and correct their credit profiles.
The RBI has introduced binding norms for RRB credit and debit cards, focusing on consent, transparency, and consumer protection. Unsolicited cards and opaque charges are strictly barred.
The Directions unify multiple credit-related instructions into a single framework for RRBs. They reinforce prudential safeguards while promoting responsible and transparent lending practices.
The 2025 Directions mandate a structured two-committee mechanism with notice, hearing and reasoned orders to ensure fair and transparent wilful defaulter classification.
RBI sets prudential norms for small finance banks, linking dividend eligibility to CRAR and NNPA ratios. Boards must ensure payouts maintain financial stability and comply with regulations.
