RBI bans banks to deploy DSAs

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The Reserve Bank of India (RBI) announced a ban on banks to deploy direct selling agents (DSAs) to sell retail loans and verifying borrowers' documents.  Ban: ♦ The ban aims to bring down cases of data theft and reduce operational risks. But it is expected that it might lead to deceleration of consumer loans and credit cards. The move of RBI comes in response to the queries of the banking industry. ♦ Currently, a considerable amount of retail assets, namely personal loans, credit cards, and consumer credit are sourced through the DSA conduit. RBI plans to make the agents play a limited role. It also stressed the bank officials to carry out the KYC procedures, involving verifying borrowers' original documents and not to be outsourced. This move is to put an end to the misuse of data. ♦ This move by RNI might be connected to the rules followed by the 39-member club of Financial Action Task Force (FATF).

from Current Affairs 2019 for Competitive Exams Current Affairs Today The Reserve Bank of India (RBI) announced a ban on banks to deploy direct selling agents (DSAs) to sell retail loans and verifying borrowers' documents.  Ban: ♦ The ban aims to bring down cases of data theft and reduce operational risks. But it is expected that it might lead to deceleration of consumer loans and credit cards. The move of RBI comes in response to the queries of the banking industry. ♦ Currently, a considerable amount of retail assets, namely personal loans, credit cards, and consumer credit are sourced through the DSA conduit. RBI plans to make the agents play a limited role. It also stressed the bank officials to carry out the KYC procedures, involving verifying borrowers' original documents and not to be outsourced. This move is to put an end to the misuse of data. ♦ This move by RNI might be connected to the rules followed by the 39-member club of Financial Action Task Force (FATF). https://ift.tt/2PeiQ7L

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