Mint Explainer: Why RBI raising risk weights for consumer loans is significant
MUMBAI: In a decisive move to tighten credit control, the Reserve Bank of India (RBI) has raised risk weights for unsecured consumer credits, including personal loans and credit card dues, expressing concern over aggressive lending in these sectors. Mint looks at how the RBI’s move will affect lenders, and how risk weights act as a regulatory tool to modulate demand for loans.
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