Shares of banks and non-banking financial companies (NBFCs) witnessed a decline, with several major firms experiencing a drop of up to 7%. This follows the Reserve Bank of India’s decision to tighten norms for consumer credit, urging banks and NBFCs to assign higher risk weights for unsecured personal loans. The move is aimed at making lenders more cautious in their approach to such advances, requiring them to set aside more funds as a safety net for consumer loans. Notably, the new regulations do not apply to housing loans, education loans, vehicle loans, and loans secured by gold and gold jewellery.