The Reserve Bank of India (RBI) made significant announcements during its bi-monthly policy review. RBI Governor Shaktikanta Das revealed that the lending limits for gold loans under the bullet repayment scheme for urban cooperative banks (UCBs) will be doubled to Rs 4 lakh.
This decision aims to provide a boost to UCBs that have achieved the prescribed Priority Sector Lending (PSL) targets. The bullet repayment scheme allows borrowers to repay both interest and the principal amount at the end of the loan tenure.
Das also mentioned that a comprehensive regulatory framework for project finance will be issued by the RBI. This framework aims to strengthen the existing regulatory structure governing project finance and standardize instructions across all regulated entities. Detailed draft guidelines will be released for public comments.
Additionally, non-bank lenders in the 'middle and base layers' will be permitted to use Credit Risk Mitigation instruments to reduce their counterparty exposure under the credit concentration norms, similar to their peers classified in the 'upper layer.'
Furthermore, the RBI is considering the introduction of Card-on-File Tokenisation (CoFT) creation facilities directly at the issuer bank-level. This move is intended to enhance the convenience of e-commerce transactions through the tokenisation of card data.
These measures reflect the RBI's efforts to stimulate lending activities, enhance regulatory clarity, and promote digital payment solutions in the financial sector.
For more updates on business news, Sensex, and Nifty, you can stay informed through Moneycontrol or by downloading the Moneycontrol App.
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This decision aims to provide a boost to UCBs that have achieved the prescribed Priority Sector Lending (PSL) targets. The bullet repayment scheme allows borrowers to repay both interest and the principal amount at the end of the loan tenure.
Das also mentioned that a comprehensive regulatory framework for project finance will be issued by the RBI. This framework aims to strengthen the existing regulatory structure governing project finance and standardize instructions across all regulated entities. Detailed draft guidelines will be released for public comments.
Additionally, non-bank lenders in the 'middle and base layers' will be permitted to use Credit Risk Mitigation instruments to reduce their counterparty exposure under the credit concentration norms, similar to their peers classified in the 'upper layer.'
Furthermore, the RBI is considering the introduction of Card-on-File Tokenisation (CoFT) creation facilities directly at the issuer bank-level. This move is intended to enhance the convenience of e-commerce transactions through the tokenisation of card data.
These measures reflect the RBI's efforts to stimulate lending activities, enhance regulatory clarity, and promote digital payment solutions in the financial sector.
For more updates on business news, Sensex, and Nifty, you can stay informed through Moneycontrol or by downloading the Moneycontrol App.
Valiant Laboratories IPO GMP
