This Newsletter sets out some of the key legislative and
regulatory updates in the banking and finance space for the month
of April 2024.
Key Facts Statement (“KFS”) for loans and
advances
The Reserve Bank of India
(“RBI”) vide its
circular dated April 15, 2024, has issued instructions on KFS for
loans and advances aimed at harmonizing instructions related to
KFS. The objective is to enhance transparency and mitigate
information asymmetry concerning retail and micro, small and medium
enterprises (“MSME”) term loan
products offered by commercial banks, primary urban cooperative
banks, state cooperative banks, central cooperative banks, and all
non-banking financial companies (including housing finance
companies) (“REs”). All new retail and
MSME term loans sanctioned on or after October 1, 2024, including
fresh loans to existing customers, must comply with inter
alia the following instructions:
