The Reserve Bank of India (RBI) on February 8, 2024 has released Statement on Developmental and Regulatory Policies. RBI has extended the Key Fact Statement (KFS) requirements for all retail and MSME loans, which was mandated only for a certain class of lenders.
The RBI further stated "Currently KFS is specifically mandated in respect of loans by scheduled commercial banks to individual borrowers; digital lending by regulated entities (REs;) and microfinance loans. Now, it has been decided to mandate all REs to provide the 'Key Fact Statement' (KFS) to the borrowers for all retail and MSME loans. Providing critical information about the terms of the loan agreement, including all-inclusive interest cost, shall greatly benefit the borrowers in making an informed decision."
The RBI also announced a review of the regulatory framework for electronic trading platforms (ETPs). The revised regulatory framework will be issued separately for public feedback.
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