RBI requests NBFCs to follow ₹20,000 cash loan cap per Section 269SS of the Income Tax Act.

The Reserve Bank of India (RBI) has reportedly sent letters to non-bank finance companies (NBFCs) requesting them to follow the ₹20,000 ($240) cash loans cap, as per Section 269SS of the Income Tax Act, 1961. This move follows actions against non-bank lender IIFL Finance for violating loan disbursal and collection rules. The RBI's efforts aim to curb cash transactions and align with its focus on retail loans post-pandemic.

May 08, 2024
3 Articles