• UGI USER
  • Mar 27, 2024
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‘RBI ACTIONS TO RESTRICT CREDIT GROWTH’:

Why in the news ?

RBI’s strict measures to control lending and improve compliance are expected to slow loan growth, raise costs, and impact valuations.

About the Regulatory Measures and Impact:

  • RBI’s stringent actions aim to control lenders’ exuberance, enhance compliance, and protect customers.
  • S&P Global predicts a slowdown in loan growth to 14% in 2024-25 from 16% due to increased capital costs.
  • Compliance costs for small lenders may rise, affecting their competitiveness.
source:mint
About credit growth:

●  Bank credit growth attributed to rising retail loans.

●  Retail loans encompass personal loans (car, mortgage, signature, credit cards) and certain business loans.

●  Retail credit growth at 9%, expected to rise, led by mortgages (51% of retail loans) and supported by unsecured and vehicle loans.