Jan 30, 2024
In today's episode, we delve deep into the recent actions taken by the Reserve Bank of India (RBI) towards the end of 2023 and the ensuing ripple effects they've set off.
The RBI, often the silent architect of our financial landscape, has made strategic manoeuvres that reshape the terrain for banks, non-banking financial companies (NBFCs), and borrowers.
Discover how these regulatory shifts could impact financial decisions and the broader economic landscape. From the nuances of risk weights to the implications for personal loan growth, this episode promises to demystify the complex world of financial regulations in a digestible and engaging format.
Here is a quick overview of what we talk about:
- We unpack the RBI's directives regarding risk weights and the restrictions placed on simultaneous lending and investing activities by financial institutions.
- Dive into how startups offering digital lending products, like CRED and Paytm, are affected and the challenges they face under the new regulations.
- Explore why your credit card limits might be scrutinised and how conflict of interest rules reshape lending dynamics.
- Understand why the RBI's focus on Alternative Investment Funds (AIFs) matters and how it impacts investors' portfolios.
- Debate whether these measures reflect a proportionate response from the RBI and what they suggest about the current state of our economy.
Timestamps
00:00 Introduction and Disclaimer
01:34 Deepak
demystifies the two new regulations by RBI on Banks and NBFC
05:37 What’s the
impact of these new regulations? Why should we care?
16:05 Why is RBI
more concerned about personal loans?
24:54 Why aren’t you
positive about the RBI action here? What’s wrong with the slowing
loan growth?
32:20 If Startups are
ready to take the risk, why is RBI stopping them?
45:14 Even after
this bull run, why isn’t there lending against securities?
52:11 RBI has a
new rule prohibiting Banks and NBFCs from evergreening loans
through AIFs.
01:03:51 Is this a
warning, a sign that the economy is over-heating?