Economy & Business MCQs

To enhance transparency and prevent unauthorized deductions, the RBI mandates that the loan amount must be disbursed directly into the bank account of the borrower, without any pass-through to the LSP.

The RBI mandates a 'Key Fact Statement' (KFS) to be provided to the borrower before the execution of the loan contract, detailing all terms, conditions, and costs transparently. This ensures complete transparency for the borrower.