The RBI’s unified lending interface has facilitated 6 lakh loans of Rs 27,000 crore as of December 6 last year, Rao said, adding that 36 lenders are active on the platform which pulls data from 50 sources.
Mumbai: India's central bank on Friday raised an alarm about the rising risks of excessive borrowing in unsecured loans and from a frenzy in the derivative markets. It asked lenders to ensure that their customers fully understand the risks associated with leveraged products and speculative investing.
Speaking at the IIM Kozhikode and National Stock Exchange joint conference, M Rajeshwar Rao deputy governor, RBI who oversees monetary policy among other key departments, highlighted the need for vigilance to ensure that excessive financialization driven by technology does not result in unsustainable borrowing.
He lauded the PM Jan Dhan Yojana that has enabled 80 per cent of adults to have bank accounts. Till date, 54.84 crore bank accounts have been opened under PM Jan Dhan Yojana with a total balance of Rs 2.45 lakh crore in the accounts. However, he said that financial inclusion is “superficial" if the accounts opened under the Jan Dhan Yojana are not used, and added that the UPI has created a large financial footprint for the informal sector which can be used by lenders to get such people or entities into the mainstream.
The RBI’s unified lending interface has facilitated 6 lakh loans of Rs 27,000 crore as of December 6 last year, Rao said, adding that 36 lenders are active on the platform which pulls data from 50 sources.
“As financial institutions integrate AI, cloud computing, and API-driven finance into their operations, they must invest in robust governance frameworks and risk management protocols to ensure compliance and customer appropriateness…A strong internal culture of risk awareness, ethical AI usage, and customer-centric innovation will be critical in navigating the evolving financial landscape effectively,” said Rao.
