Depositors' interest

May 1, 2023 Depositors' interest This refers to the report "Don't increase unsecured loans exposure: RBI to banks" (The Hindu Business Line, May 1). The concern of the banking regulator is real. Many of our banks have just crossed over the NPA bumps, some safely and others still in the recovery rooms. Even a high level of secured loan portfolios didn't help Indian banks didn't help the banks which went agressive in lending to big borrowers or used conduits like SHGs and NBFCs for reducing costs in keeping NPAs within acceptable limits during the last decade. Beyond putting restrictions on unsecured loans, Government and RBI at this stage may have to overhaul the whole architecture of microfinance and put in place transparency in loan procedures, introduce supervisory and regulatory controls on the appraisal systems adopted and rates of interest charged by lenders including banks. A comprehensive and compulsory insurance system to protect the borrowers' interest also is a need of the hour. M G Warrier Mumbai


Sagar Gupta said…
Personal loan interest rates play a crucial role in determining the affordability of borrowing. It's essential to compare rates and choose wisely to ensure a loan that suits your financial needs.

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