 "Fintech")
Fintech bodies have raised concerns about potential double-provisioning resulting from the Reserve Bank of India’s (RBI’s) new mandate, which disallows lenders from offsetting default loss guarantees (DLGs) provided by loan service providers (LSPs) against provisions for stressed loans. These bodies are now collecting data from their members to present the likely impact of the mandate to the RBI.
Lenders have been directed to make the necessary provisions by September 30. Fintech bodies are hopeful of gathering sufficient data on this segment by then, which could potentially influence the regulator’s decision.
The RBI has mandated finance companies to make
