Please refer to the Prudential Regulations for Consumer Financing as amended from time to time.

2.     Based on the review of prudential regulations and feedback from banks/DFIs, R-13 of consumer financing has been replaced as under:

“The banks/DFIs shall ensure that the vehicle remains properly insured at all times during the tenure of the loan. However, where the bank/DFI holds 100% provision against such loan, bank/DFI, if deemed appropriate, may not obtain insurance cover for the vehicle for remaining tenure of the loan.”

3.     Please acknowledge receipt.