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RBI clampdown on firms may limit credit growth in 2024-25: S&P Global

RBI clampdown on firms may limit credit growth in 2024-25: S&P Global
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RBI showing serious commitment to improve governance, transparency in finance companies, banks

The recent measures by the RBI will curtail lenders over-exuberance, enhance compliance culture, and safeguard customers, but the drawback will be higher capital costs for institutions.

RBI: RBI showing serious commitment to improve governance, transparency in finance cos, banks

S&P Global Ratings highlights the Reserve Bank of India s (RBI) commitment to enhancing governance and transparency in India s financial sector. The RBI s recent measures aim to mitigate lenders exuberance, improve compliance, and protect consumers, albeit at the expense of higher capital costs for institutions. Regulatory actions include curbing lending activities and stringent penalties for breaches, signaling a departure from nominal penalties.

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