RBI Governor, Shaktikanta Das, announced on Wednesday that draft guidelines on the levy of penal charges by Regulated Entities (REs) will be issued for stakeholder feedback. Currently, REs are required to have a policy for penal interest on advances, but there are divergent practices in place. The guidelines aim to improve transparency, reasonableness, and consumer protection, as some charges have been found to be excessive. The announcement was made following the Monetary Policy Committee (MPC) meet held from February 6 to 8, 2023.
Climate Risk & Sustainable Finance
Recognising the importance of climate-related financial risks which may have financial stability implications, the Reserve Bank had issued a Discussion Paper on Climate Risk and Sustainable Finance in July 2022. Based on the feedback received, it has been decided to issue guidelines for REs on (i) a broad framework for acceptance of Green Deposits; (ii) disclosure framework on Climate-related Financial Risks; and (iii) guidance on Climate Scenario Analysis and Stress Testing.
