RBI tightens rules for personal loans and credit cards; what does it mean for banks, NBFCs, and customers?
RBI tightens rules on personal loans: As of 11:43 a.m., Nifty Bank was down 1.02 per cent at 43,710.6, and the S&P BSE Bankex was down 1.10 per cent at 49,363.37 levels.
RBI tightens rules on personal loans: Banking and financial services stocks came under pressure in the morning trade on Friday, November 17, after the Reserve Bank of India (RBI) tightened rules for personal loans and credit cards last evening amid a demand surge.
As of 11:43 a.m., Nifty Bank was down 1.02 per cent at 43,710.6, and the S&P BSE Bankex was down 1.10 per cent at 49,363.37 levels.
The Nifty Financial Services index was down 0.61 per cent with SBI Cards being the top loser, which slipped over 5 per cent, followed by Cholamandalam Investment and Finance Company, which dipped over 3 per cent. SBI and Axis Bank slipped over 2 per cent, Bajaj Finance and Shriram Finance were down over 1 per cent and HDFC Bank, ICICI Bank, Bajaj Finserv, and Kotak Mahindra Bank were down between 0.06 per cent and 0.83 per cent.
On the Nifty 50 pack, SBI, Axis Bank, ICICI Bank, and Bajaj Finance were the top losers, slipping between 0.87 per cent and 3.01 per cent.
Last evening, the Reserve Bank of India (RBI) increased the risk weights for banks and non-bank financial companies (NBFCs), or the capital that banks need to set aside for every loan, by 25 percentage points to 125 per cent on retail loans. Risk-weighted assets (RWA) is a banking term that refers to an asset classification system that is used to identify the minimum amount of capital that a lending institution must have to avoid insolvency and protect its depositors and investors.
stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.