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 […]
Future of P2P Lending and Its Direct Impact on Loan Origination Systems
Peer-to-peer (P2P) lending became a global phenomenon after the 2008 financial crash, emerging as a reliable alternative to traditional financial institutions including banks. While P2P lending businesses started entering the Indian market in 2014, it wasn’t until 2017 when the Reserve Bank of India (RBI) issued guidelines suggesting that all P2P service providers must be […]
Best Practices for Evaluating Bill Discounting Requests
Bill discounting, or invoice financing is a short-term finance option for businesses, which can help them free up funds tied up in unpaid invoices. As a result, companies can optimise their cash flows and payment cycles without disturbing their balance sheets. It offers advantages to vendors and purchasers alike. Vendors can fuel growth and stabilise […]