Bank, NBFC shares fall after RBI tighten norms on personal loans

Shares of bank and non-banking financial companies (NBFCs) dropped by up to 7% in morning trade due to heavy selling pressure after the Reserve Bank of India (RBI) tightened norms for consumer credit. The RBI has increased the risk weight for unsecured personal loans, requiring banks and NBFCs to set aside more funds as a safety net for such advances. The new regulations do not apply to housing loans, education loans, vehicle loans, and loans secured by gold and gold jewellery.

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