The recent suicide of a Chennai trader, tied to a ₹10 lakh stock market loan, underscores rising debt-related suicides. Simultaneously, the Reserve Bank of India (RBI) directs caution, instructing Bajaj Finance to cease two digital lending products and urging increased capital for personal loans. Retail loans, constituting over a third of non-food bank credit, raise default concerns. Market reacts, with Bajaj Finance and SBI Cards declining 10% in a month. Borrowers are advised to differentiate secured and unsecured loans, exercise prudence, especially for speculative activities like stock investments, and consider professional financial advice amidst the changing lending landscape.
RBI’s Cautionary Moves Amid Rising Debt-Related Suicides and Market Concerns
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