RBI mandate The RBI (Reserve Bank of India) has recently mandated all Regulated Entities (REs), including NBFCs (Non-Banking Finance Companies), to provide the ‘Key Fact Statement’ (KFS) to borrowers.
- The RBI also proposed introducing offline functionality in CBDC-Retail (CBDC-R) to facilitate transactions in areas with poor or limited internet connectivity.
About the recent move:
- It will help borrowers of all retail and MSME (Micro, Small and Medium Enterprises) loans due to enhanced transparency and clarity on loan pricing and charges.
About the Key Fact Statement (KFS):
- The KFS is a document that details lending terms and conditions, including the all-in-cost of the loan, in a simple and easy-to-understand format.
- It aimed at providing greater transparency and detail on the pricing of loans and other charges for retail and MSME customers.
Ref: Source
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