Small and safe? Banks, fintech loans under Rs 50,000 on RBI radar

Scrutiny strengthened after regulated entities were in November asked to review exposure limits for consumer credit

The Reserve Bank of India (RBI) is scrutinising loans with a ticket size of up to Rs 50,000 on the books of banks and fintech lenders, stepping up its monitoring after calling for greater care in consumer credit.

A majority of consumers in this segment service three “live” loans and it is suspected this could be an indication of evergreening with the possibility of diversion into the capital markets.

The development should be seen in the context of the regulator’s move last November when it asked regulated entities to review their exposure limits for consumer credit and