RBI asks NBFCs to stick to Rs 20,000 cash loan pay-out limit

Reserve Bank of India (RBI) has recently reinforced regulatory measures to ensure non-banking financial companies (NBFCs) adhere to a cash loan disbursement limit of Rs 20,000. This move is part of a broader strategy to foster a balanced and resilient financial ecosystem, targeting issues ranging from IT governance to credit expansion and non-performing assets (NPAs). By enforcing this cash limit, the RBI aims to curb potential risks associated with excessive cash transactions and ensure compliance with income tax regulations. The behind story: The recent regulatory measures implemented by the...