The RBI is sceptical of sure types of revolving credit score provided by non-bank entities, notably the place reimbursement patterns might conceal an increase in family indebtedness
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Revolving credit score, considered one of India’s most interesting instruments for monetary inclusion, has made deep inroads in creating sustainable rural wealth. Nonetheless, rising dangers of debt recycling have made the Reserve Financial institution of India (RBI) sceptical.
For rural India, the place earnings is principally seasonal and contributes 46% to 50% of gross home product, revolving credit score grew to become an essential part and protect in opposition to monetary shocks in addition to casual mortgage sharks.
Revealed – August 19, 2026 12:25 pm IST
