Soon, rules for penal charges on loans, QR code based coin vending machines by RBI

RBI governor announced a slew of additional measures during the credit policy announcement.

Guidelines for levying penal charges on loans
The central bank will soon issue draft guidelines to standardise the process of levying penal charges on loans. The governor pointed out that currently, the penal charges levied are not uniform and in certain cases are even excessive. These guidelines will help enhance transparency and consumer protection. Once the draft guidelines are ready and before being finalised, stakeholders will have the opportunity to put forth their comments and suggestions.

Climate Risk & Sustainable Finance
RBI will issue guidelines related to climate change risk. Basis the feedback on the discussion paper, RBI has decided to put in place guidelines for:
1. Framework for accepting green deposits
2. Disclosure framework on climate-related financial risks
3. Guidance on climate scenario analysis and stress testing
RBI governor said, “These measures will ensure that out financial system starts developming and building in the forces of resilience to withstand any possible emergency of vulnerability to climate change”.

UPI facility for foreign travellers to India
The Reserve Bank on Wednesday allows inbound travellers from G20 nations arriving at select airports to use UPI for making payments in the country. This facility will later be extended to travellers from other countries as well.

QR Code based Coin Vending Machine
To increase accessibility to coins, RBI will launch a pilot project on QR code based coin vending machine. These machines will dispense coins against a debit to a customer's account using UPI. The pilot will be launched in 12 cities.