RBI has increased the risk-weights for bank's exposure to NBFCs.
NBFC's rely heavily on banks for lending.
Now banks will have to keep extra money aside every time they lend to NBFC.
Everything you need to know🧵
In a big relief to fintech players, today RBI allowed Digital lending platforms (fintech entities) to provide Default Loss Guarantee to banks and NBFCs.
Why is this important, and what are the implications?
A brief thread 🧵:
@gaurimehra05@IndiGo6E@AAI_Official@JM_Scindia I’m in this flight and it is testing our patience now. There are many infant in the flight and they can not bear this anymore. Cabin crew dont have any clue what is hppng and wat is the next step from here. There is no food left even for the babies.
@DGCAIndia@Gen_VKSingh
Nearly all Indian banks have repo rate as their external benchmark for floating rates. With 50 bps increase in the repo rate, borrowers can expect subsequent rise in interest rates on floating rate loans (e.g. home loans)
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