This month, RBI banned Kotak Mahindra Bank from adding any new customers due to non compliance. This ban will continue until they fix the issue. SFBs can now covert to Universal Banks if they meet the criterion set by RBI. So far, only AU Small Finance Bank meets the criteria but won’t be converting to a Universal Bank any time soon. RBIH has also come up with a new platform to lending to women SHGs. RBI increased the risk weight of personal loans, affecting banks co lending of unsecured loans. RBI have also ordered all banks to review how interest is being charged on loan amounts and asked them to not levy it until the amount is received.
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