We are closely watching the vulnerability represented by this group and the debt they carry, and how it poses a risk to both the financial system and the economy. And it is important for these households to understand how personally vulnerable they may be.
Designing such regulatory policies is always challenging as it requires balancing innovation with prudence. Some of the examples are   RBI set out securitisation guidelines in 2006 after the securitisation market had developed but was not functioning in a prudentially sound manner.