New Delhi: Personal loans have come under the scrutiny of the Reserve Bank of India (RBI).
The RBI is suspecting that these loans may have found their way into the stock market.
Currently, banks give personal loans without asking borrowers to specify the purpose of the loan.
RBI is likely to direct banks to not only ask for the end use wherever possible but also pay through a pay order, rather than cash.
Interestingly, over the past few months, many foreign and private banks have been selling personal loans for stock market and mutual fund investments.
That's not all - home loans and other consumer loans too have come under scrutiny and the RBI is likely to ask banks to check the end use of these loans too.
It is believed that some of these loans too may have been diverted to the stock market.
In order to tighten the exposure of the banking system to the stock market, the RBI is also likely to increase the risk weightage on loans against shares from the current 100 per cent to 100-125 per cent and margins on these loans from the current level of 50per cent.
All these measures are expected to be announced in the RBI's forthcoming monetary policy, which will be announced on Tuesday.
Comments
0 comment