The microloan market is being closely monitored by the Reserve Bank of India (RBI) following its recent crackdown on unsecured personal loans in November 2023.

This increased scrutiny is in preparation for the upcoming Monetary Policy Committee (MPC) meeting in December, where important economic indicators will be evaluated.

Recent developments have caused a temporary shift in the liquidity of the banking system, resulting in a deficit. This situation has arisen due to various factors that have emerged in the past few days, causing concerns among financial analysts and market participants.

It is advised that investors closely monitor these trends as they could impact monetary policy decisions and overall market stability.