Requirement of key fact statements extended to cover all retail and MSME loans

“Circular will be released separately as banks will need time to make preparations,” Das said.

The Reserve Bank of India (RBI) has extended the requirements of key fact statements to all retail and medium small and micro enterprises (MSME) loans, Governor Das said.

“RBI mandated certain categories of lenders to provide borrowers with key fact statements which provide details of all transactions fees, interest. Requirement of key fact statements extended to cover all retail and MSME loans” said Das.

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Das said that this measure will lead to enhanced transparency and will enable customers to make enhanced operations.

“Circular will be released separately as banks will need time to make preparations,” Das said.

The RBI also introduced a framework for authentication of digital payment transactions. “To facilitate the use of such mechanisms for digital security, it is proposed to adopt a principle-based framework for authentication of digital payment transactions,” Das said at the Monetary Policy Committee announcement.

Das highlighted that the RBI has not prescribed any particular Additional Factor of Authentication (AFA) but the payments ecosystem has largely adopted SMS-based One-Time Password (OTP).

Also read: RBI introduces framework for digital transaction authentication

Repo rate unchanged

The Reserve Bank of India’s Monetary Policy Committee has decided to keep the policy repo rate unchanged at 6.5%.

The six-member monetary policy committee voted by 5:1 majority to keep the repo rate unchanged at 6.50 per cent in its last meeting of FY24 as retail inflation continues to be above its target of 4 per cent.

The MPC also decided by a majority of five out of six members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth.