The 30th Standing Advisory Committee (SAC) in Coimbatore on October 27, 2025, highlighted the urgent need for Micro, Small, and Medium Enterprises (MSMEs) lending models to shift from a traditional collateral-based approach to cash-flow-based lending. This strategic realignment is critical for overcoming the current challenges faced by MSMEs. As per a survey of 2,000 MSMEs, […]
How RBI’s New Loan Rate Rules Transform Your Lending Operations
The Reserve Bank of India (RBI) announced regulatory amendments to the structure governing loan rate rules, lending against gold/silver collateral, and Perpetual Debt Instrument (PDI). Three significant regulatory changes took effect on October 1, 2025; four remain open for consultation until October 20, 2025. The proposed reform aims to modernise the lending framework by easing […]
How RBI’s New NBFC Rules Will Reshape the Lending Landscape
The Reserve B͏ank of͏͏͏ ͏India (R͏BI)͏ has set͏ th͏e s͏tage for a ͏signif͏icant trans͏form͏ation in t͏he l͏ending space ͏w͏ith its new͏ ͏reg͏u͏͏l͏a͏͏tory f͏ramew͏ork for NBFCs͏. Designed to st͏rengt͏hen governance͏, ͏e͏͏n͏force ͏ri͏sk d͏iscipline, and cu͏rb u͏nchecked NBFC lending p͏racti͏ces, t͏he͏se refo͏rms wi͏ll imp͏͏act͏ ho͏w non-͏banking͏ le͏͏nders raise ͏fu͏nd͏s, pric͏͏e ͏lo͏a͏ns, and ͏ma͏nage bor͏r͏o͏w͏͏ers. Fo͏r ͏N͏B͏F͏Cs and […]
Understanding the Recent R͏BI͏ Repo ͏͏Rate Cut and Its Impact on Lending Industry
The Reserve Bank of India’s 50 basis point cut in the repo rate, announced on June 6, 2025, presents a strategic juncture for lending institutions. By bringing the benchmark rate down from 6.00% to 5.50%, the RBI has not only signaled a shift to a neutral monetary stance but also opened the door for significant […]
RBI Innovation Hub: Building a Unified Lending Interface with Aggregators
In recent years, India’s digital lending industry has significantly boomed. Statista reports that it’s one of the “fastest-growing FinTech segments.” For instance, it grew from USD 9 billion to USD 270 billion in the latest decade (2012-2022). According to many analysts, it’s all thanks to strategies offered by the RBI Innovation Hub (RBIH). Recently, they […]
The Price of Unchecked Growth: RBI Governor Warns NBFCs
Today, a growing number of Non-banking Financial Companies (NBFCs) face immense pressure to drive higher returns. In the pursuit of this goal, some NBFCs are engaging in irregular practices, which can invite strict action by the Reserve Bank of India (RBI). For instance, the RBI recently imposed restrictions on four NBFCs that were charging exorbitantly […]