The Reserve Bank of India (RBI) has raised concerns regarding excessive borrowing in unsecured loans and the prevailing euphoria in derivative capital markets. Deputy Governor M. Rajeshwar Rao highlighted these issues during a macroeconomics, banking, and finance conference in Mumbai. He emphasized the need for entities to guard against reckless financialization and underscored that compliance should be integral to digital strategies. Additionally, the RBI has released draft rules concerning the levy of foreclosure charges and pre-payment penalties on loans, inviting stakeholder comments by March 21. The revised instructions will apply to eligible loans and advances foreclosed on or after a date to be specified in the final circular.