HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
RBI showing serious commitment to improve governance at finance companies, banks: S&P
Mar-27-2024

Credit rating agency, S&P Global Ratings in its latest report has said that India's financial system regulator, the Reserve Bank of India (RBI) is showing a serious commitment to improving governance and transparency at finance companies and banks. 

The report further noted that 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.  According to S&P, the RBI has diminishing tolerance for non-compliance, customer complaints, data privacy, governance, know-your-customer (KYC), and anti-money laundering issues.

Further, rating agency said that some retail loans, such as personal loans, loans against property, and gold loans, may be diverted to invest in stock markets. It is difficult to ascertain the end-use of money in these products, but market participants believe that the RBI and market regulator Securities And Exchange Board of India want to protect small investors by scrutinising these activities more cautiously.


  RELATED NEWS >>