The Reserve Bank of India (RBI) has decided to mandate all Retail Entities (REs) to provide the ‘Key Fact Statement’ (KFS) to the borrowers for all retail and MSME loans.
Of late, the regulator has asked lenders to provide their borrowers a KFS containing the information regarding a loan agreement, including all-in-cost of the loan.
The RBI has asked banks and other REs, including Non-Banking Finance Companies (NBFCs), to provide more transparency and details on pricing of loans and other charges levied on retail and Medium, Small and Micro Enterprise (MSME) customers.
The bank has also asked lenders to provide their borrowers a KFS containing the information regarding a loan agreement, including all-in-cost of the loan, in simple and easily understandable format.
The central bank has also proposed to introduce an offline functionality in CBDC-Retail (CBDC-R)— e-rupee or digital rupee — for enabling transactions in areas with poor or limited internet connectivity.
In addition, the regulator has decided to review the regulatory framework for Electronic Trading Platforms, too (ETPs).