The Reserve Bank of India (RBI) has called for increased scrutiny of the financial sector’s rising unsecured loan exposure. The central bank has warned banks and non-banking finance companies (NBFCs) to strengthen their risk management systems and closely monitor the growth of unsecured loans. Though unsecured loans account for less than 10% of formal credit in India, their high growth rate and lack of collateral make them more vulnerable.
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18 hours ago