AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Finshots Daily
Another RBI rule is freaking banks out
May 10, 2024
Podcast discusses RBI's new regulations on big infrastructure loans causing concern for banks and NBFCs. Emphasizes importance of evaluating viability and managing provisions to prevent risky lending practices and financial instability.
05:55
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- RBI's new rules increase provisions for infrastructure loans, causing concerns among banks and NBFCs
- RBI intervenes to prevent a repeat of past crises by enforcing stricter regulations on project loans
Deep dives
RBI's New Rules on Project Loan Provisions
The RBI has introduced new rules affecting project loans, requiring banks to set aside a higher percentage of provisions for large infrastructure project loans. These project-financed loans involve significant amounts of money lent to big corporations for various infrastructure projects like roads, bridges, and airports. The RBI's aim is to ensure banks are better prepared for any potential risks associated with these loans by increasing the provision percentage from the current 0.4% to potentially up to 5%. This move has stirred concerns among banks and NBFCs due to the impact on their profits and potential repercussions on interest rates for borrowers.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode