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The Reserve Bank of India Digital Lending Guidelines appeared to prohibit any transfer of risk by an RE to a third party in relation to lending, and therefore led to some industry-wide confusion on whether REs could enter into Digital Lending Guidelines arrangements.
Rather than fixing legal delays, the RBI has chosen to embrace a compromise model.
While some reports had initially said that the Bombay HC had stayed the effect of the RBI circular, the bench of Justices G.S. Patel and Neela Gokhale, the court's order said this was not the case.
The Court clarified that its directions on the master circular is restricted only to those actions by the banks that are inconsistent with a Supreme Court ruling on the issue.
The Reserve Bank of India (RBI) said on Tuesday that a "compromise settlement" with borrowers aims to enable multiple avenues to lenders to recover the money in default without much delay.The RBI made the remarks while issuing a set ...