Stay updated with breaking news from Geeta Chugh. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
S&P Global Ratings will watch the incoming Indian government's fiscal consolidation path for the next two years for a possible sovereign ratings upgrade, an analyst at the ratings agency said on... -May 31, 2024 at 04:34 am EDT - MarketScreener
Kotak Mahindra Bank: The Reserve Bank of India (RBI) is cracking down on regulatory compliance in the banking industry, issuing strict penalties for non-compliance. Recent actions, including barring Kotak Mahindra Bank from new customer sign-ups, highlight the RBI's serious approach to enforcing regulations. The central bank's tougher stance aims to improve governance and transparency in the financial sector, despite potential impacts on growth and capital costs. The RBI's increased vigilance follows high-profile banking collapses and aims to prevent systemic risks while promoting a more robus...
RBI Governor Shaktikanta Das emphasizes the responsibility of financial institutions in handling public funds. Recent actions against entities like Paytm, IIFL Finance, and JM Financial highlight regulatory scrutiny. S&P lauds RBI's governance efforts but warns of higher capital costs due to stringent measures. Regulatory focus intensifies on compliance, customer protection, and risk mitigation.
The Reserve Bank of India (RBI) is increasing regulatory scrutiny of lenders to improve governance and curb exuberant lending. The RBI has tightened its norms on unsecured loans and warned lenders against exuberance due to rising risks to the financial system. The increased focus on compliance and tight liquidity in the banking system may slow down credit growth to 14% in 2024-25 from 16% this financial year.
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.