The Reserve Bank of India (RBI) barred four non-banking finance companies (NBFCs), including two microfinance institutions (MFIs), from sanctioning and disbursing loans for charging exorbitant interest rates to borrowers. The four entities were Asirvad Microfinance, Arohan Financial Services, DMI Finance, and Flipkart co-founder Sachin Bansal’s Navi Finserv.

Navi Finserv offers home and personal loans, while DMI Finance provides micro, small, and medium enterprise loans as well as personal and consumer loans.

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Besides usurious pricing, RBI found these NBFCs non-compliant with regulatory guidelines on assessing household income and considering borrowers’ existing and proposed monthly repayment obligations. “Deviations were also observed with respect to income recognition and asset classification norms, resulting in evergreening of loans, conduct of gold loan portfolio, mandated disclosure requirements on interest rates and fees, outsourcing of core financial services…,” the country’s central bank said.

RBI clarified that these NBFCs could continue servicing existing customers and manage collections and recoveries. The business restrictions would be reviewed once the companies confirm they took suitable remedial measures to comply with pricing policies, risk management, customer service, and grievance redressal guidelines.

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Market experts told THE WEEK that the steps from RBI would serve as a warning to such NBFCs and MFIs who indulge in predatory pricing and charging exorbitant interest rates from customers. “RBI has recently been very vigilant about malpractices in this space, particularly where MFIs are busy charging exorbitant interest rates. It has issued multiple warnings, and this action is no surprise,” said SEBI-registered investment advisor Gaurav Goel.

“Such exorbitant pricing leads to more defaults and is counterproductive from a larger perspective. We believe in the long haul this action would be positive for the hygiene of Indian financial institutions and for safeguarding the interests of the common people,” added Goel.

Many other experts felt that such a move would significantly impact the co-lending space as the central body tightens controls over NBFCs. Co-lending allows NBFCs and banks to partner and combine their strengths in risk-taking, regulatory compliance, and customer reach. The regulations, though restrictive, also encourage responsible lending and ensure that NBFCs maintain transparency and avoid reckless lending practices.

“We see this regulatory shift as a positive move, as it enhances the credibility of the sector. By weeding out weaker players, the regulations are creating space for more responsible players in the NBFC sector to thrive,” Rupee122 founder Vikkas Goyal pointed out.

“The future of co-lending in the NBFC space will be marked by stronger partnerships, stricter risk assessment, and more robust operational frameworks to maintain regulatory compliance while continuing to serve a growing customer base,” said Goyal.

Few stakeholders felt that such a move by RBI presents both challenges and opportunities in the co-lending space. With RBI regulations now focusing on curbing the lending capabilities of certain NBFCs, the co-lending space is likely to see more stringent governance, especially in areas like credit assessment and disbursal criteria, they said.

“We believe that the future of co-lending will shift toward enhanced accountability and better risk management practices. By adhering strictly to these evolving regulations, NBFCs can foster greater trust within the financial ecosystem. These regulatory measures, while initially restrictive, could create a more resilient and transparent lending environment that benefits both borrowers and lenders in the long term,” observed Amit Bansal, founder of BharatLoan.

Borrower credit sanctions need more checks and balances

Through such a move, RBI continues to believe that the fintech originator and the co-lending partner (balance sheet provider) should both evaluate the borrower’s credit, and every sanction has to pass through the credit team. In an attempt to approve loans instantly, the co-lending partner ends up relying a lot on the originator for assessment. As a result, the credit analysis that the balance sheet provider should ideally perform has become less stringent. “This [RBI] circular would begin to exert pressure on the originator to keep the firm running, looking for liability, leading to a gradual shift towards partnerships with private and public banks,” said Nirav Shah, MD of Investment Banking at Equirus.

The circular reflects the RBI’s broader agenda to ensure responsible lending practices in the financial sector. As the microfinance sector grows, regulatory scrutiny is likely to intensify, pushing institutions to adopt fairer and more transparent lending practices.

“The primary concern appears to be the excessive Weighted Average Lending Rate (WALR) and interest spreads over their cost of funds. At the same time, the NBFCs are reported to have deviated from the Fair Practices Code and regulatory guidelines concerning the assessment of household income and repayment obligations,” remarked Raiyan Kazi, business head of TransBnk, a digital transaction-banking platform.

“The co-lending market is expected to see a drop in volumes in segments with relatively higher FLDG as the industry adjusts to the new normal. However, the sector’s growth potential remains, driven by the increasing demand for financial services and the role of NBFCs in broadening access to finance,” added Kazi.

Yesterday, one of the affected firms, Asirvad Microfinance, issued a media statement acknowledging RBI’s circular. “This matter has been immediately brought to the notice of the board, and a meeting has been convened to take immediate action. The board has reiterated its unwavering commitment to implement RBI’s direction in letter and spirit and monitor the corrective action in a time-bound plan,” the statement read.

Walmart’s Affordable Two-Story Tiny Home: The $5,497 Housing Solution

As housing costs continue to rise, more people are looking for affordable alternatives that don’t sacrifice comfort or functionality. Tiny homes are a booming trend, offering a compact and efficient living solution. Walmart is joining the movement with an exciting and budget-friendly offering—a two-story tiny home priced at just $5,497. This could be your ticket to owning a home without breaking the bank.

Whether you’re a first-time homebuyer struggling to enter the housing market, someone seeking a minimalist lifestyle, or just looking for a cost-effective rental property, Walmart’s tiny home could be exactly what you need. Its simple yet versatile design makes it an excellent option for a variety of uses—from a guest house, Airbnb rental, or even a home office or studio space.

On the outside, the small house resembles a straightforward but functional garage shed.

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Tiny Living, Big Benefits

Tiny homes like Walmart’s Best Barns Geneva 12×16 Wood Shed Kit offer more than just a place to live—they’re a lifestyle choice. Embracing tiny living allows homeowners to minimize their carbon footprint, reduce energy consumption, and save money on utilities. For those tired of the burden of large homes and hefty mortgages, a tiny home provides a refreshing alternative.

This specific model is perfect for those who need extra space on their property, whether it’s a single-car garage, a place to store tools, or a cozy living space for guests. From the outside, it resembles a high-quality garage shed, but inside, it’s built to maximize space with a second-floor loft, adding valuable storage or an extra sleeping area.

What’s more, tiny homes are customizable. The Best Barns Geneva model comes pre-primed, so you can easily paint it in your preferred color, making it truly your own. And if you’re a fan of DIY projects, this tiny home provides a hands-on opportunity to enhance your skills, as assembly is required.

In fact, Walmart’s priciest tiny home currently stands at a whopping $29,990. So, if you’re looking for a more budget-conscious option, this $5,497 model offers fantastic value.

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A Quick and Easy Purchase

One of the standout features of this tiny home is its ease of purchase and delivery. Walmart offers delivery in less than a week, meaning your tiny home could be on your property in just a few days. The current listed price is $5,947, slightly above the $5,497 price point, so be sure to check Walmart’s website for up-to-date pricing, availability, and potential promotions.

While the home is available online, availability may vary between in-store, online, and app purchases. Walmart is currently offering free shipping for this product, with a delivery date as early as Tuesday, October 29. However, stock availability is subject to change, so it’s always a good idea to check back regularly if the item is out of stock.

Who Should Consider Buying Walmart’s Tiny Home?

• First-time buyers: Entering the housing market can be tough, but Walmart’s tiny home offers an affordable alternative to skyrocketing home prices.
• Airbnb hosts: For those interested in generating rental income, a tiny home is a low-maintenance option that can serve as a cozy retreat for travelers.
• Homeowners needing extra space: Whether it’s for guests, storage, or a home office, this tiny home offers additional living space without the hassle of a major home renovation.
• DIY enthusiasts: If you love working with your hands, assembling this home could be an exciting project that adds value to your property.

Additional Considerations

While Walmart’s tiny home is an appealing choice, there are a few additional factors to keep in mind before purchasing. First, although the home is designed to be a cost-effective housing solution, it doesn’t come with flooring, so you’ll need to budget for this separately. Second, because it’s sold as a shed kit, you’ll need to be comfortable with a DIY assembly or hire a contractor to help put it together.

Moreover, while the home can handle wind speeds of up to 90 mph and snow loads of up to 45 lbs per square foot, it’s important to check local zoning laws and building codes to ensure the structure is compliant in your area. This will help avoid any legal complications and ensure that your tiny home is built to last.

Fast Delivery, Lasting Value

One of the best features? Walmart offers delivery in under a week—meaning your tiny home could arrive in just a few days. The current price is listed at $5,947 online, but it’s always a good idea to double-check Walmart’s website for the latest pricing and availability. While shipping is free at the moment, this is subject to change, so act fast if you’re ready to dive into tiny home living.

Ready to make a move? Visit Walmart’s website to see if this tiny home is in stock and to explore delivery options in your area.

Product Specifications:

Best Barns Geneva 12×16 Wood Shed Kit

Over the last three years, capital spending by states saw strong growth, averaging 27.6 per cent. But, how are things looking ahead? A study by the National Stock Exchange (NSE) based on analysis of budgets of 21 states, comprising 95 per cent of GDP, suggests it will considerably slow down in the current financial year ending March 2025.

According to the NSE study, capital spending by states is expected to grow by a “modest” 6.5 per cent to Rs 6.5 lakh crore in 2024-25, which is much slower than the 39.3 per cent growth as per revised estimates for the previous financial year.

The capital-to-revenue expenditure ratio, a measure of expenditure quality, is set to decline to 20.7 per cent for 2024-25, from 21.2 per cent as per revised estimates for 2023-24, the data showed. While Gujarat leads here with a ratio of 36.2 per cent, Punjab has the lowest ratio at 6.2 per cent.

Revenue expenditure is also budgeted to increase by a four-year low of 8.9 per cent to Rs 44.2 lakh crore.

While revenue receipts, comprising over 99 per cent of states’ overall receipts, are expected to grow at a marginally higher 10.6 per cent, non-debt capital receipts are budgeted to decline by 30 per cent, according to NSE.

“The growth in revenue receipts is expected to come from robust expansion in states’ own revenues, tax (+14.5 per cent) and non-tax (+17.9 per cent), together accounting for 59.4 per cent of total receipts for these states in FY25. On the contrary, the overall transfer from the Centre in the form of tax devolution and grants-in-aid are budgeted to increase by a modest 4.5 per cent,” NSE said in the report.

The moderation in overall receipts has weighed on expenditure growth, with growth in both revenue and capital expenditure moderating to single digits in FY25 budgeted estimates.

“While revenue expenditure growth is pegged at 8.9 per cent (versus 17.2 per cent in FY24), committed expenditure growth is budgeted to remain fairly steady 10.2 per cent. Capital expenditure growth, on the other hand, is estimated at a marginally lower 6.5 per cent in FY25, but off a strong 39.3 per cent growth in the previous year. The states’ capital outlay—capital expenditure excluding loans and advances by state governments—is expected to grow at an even lower 4.7 per cent,” according to NSE.

However, there is a significant disparity on spending among states. While, large states such as Gujarat, Rajasthan and Tamil Nadu have budgeted a capex growth between 24-30 per cent, other large states including Bihar, Madhya Pradesh and Maharashtra budgeted a contraction, according to the study.

Due to a slight miss in overall receipts, on the back of lower-than-budgeted non-tax revenues, along with higher-than-budgeted revenue expenditure, the overall deficit for the 21 states studied, surpassed the budget estimates by 30 bps to 3.5 per cent of GSDP (gross state domestic product) last financial year. For FY25, the fiscal deficit is estimated to be lower at 3.2 per cent of GSDP, but still exceeding the 3 per cent recommended by the 15th Finance Commission, NSE noted in the report.

The success of AHR Group is due to the “transparency of the whole business” while the financial sector has been “historically opaque”, which has given the international financial advice firm a “USP”.

This is what AHR Group managing director & co-founder William Burrows told Money Marketing when explaining how the firm first came about.

AHR Group was founded in 2020 following the merger of UAE-headquartered Arlo Wealth and Harrison Rowe, an international advisory business.

Founders Burrows, Tyla Phillips, Asad Sheikh and Daniel Waterman were at Harrison Rowe, while Daniel Dickinson and Marc Beattie were at Arlo Wealth.

Phillips is AHR Group executive director, Sheikh is AHR Group chief commercial officer, Waterman is AHR Group executive director and Dickinson is AHR Group CEO. Beattie is now Wealth Management Partners director, which is also based in the UAE.

AHR now has a significant presence in the UAE and offices in Mauritius, Malaysia, Cyprus, the UK and Australia.

Burrows recalled how in just eight weeks the two companies became one: “We realised Harrison Rowe was missing something that Arlo Wealth had and Arlo Wealth was missing something that Harrison Rowe had.”

Despite financial advice being very well established in the UK, “there are a number of nuances that change advice abroad”.

Burrows added that the perception of the international advice space has always been of concern in the UK as there have been international advisers “who have bent the rules”.

The main client base of AHR Group is British expats, with it being more likely when someone from the UK moves to another country, they will stay there, Burrows said.

He said that being an expat has a “huge impact on the advice given”. Once someone moves to another country, it usually means they have money saved in another jurisdiction, which adds another layer of “complexity” to the client.

For every five advisers AHR Group has, it also has a specialist working in a certain area.

In August and September this year, AHR Group received both International Professional Partner Firm (IPPF) recognition from the Chartered Insurance Institute (CII) and Chartered Institute for Securities & Investment (CISI) chartered status.

AHR Group is the first and only international financial advice firm in the Middle East and Central South Asia regions to receive IPPF recognition from the CII.

AHR Dubai is the second firm in the Middle East to receive CISI recognition.

Burrows said “we are the only international firm that has both [CII &CISI] recognition”, which is “more meaningful” for British expats.

Also in July 2024, Titan Wealth announced it had bought AHR Group.

Burrows said this started with a conversation in early 2023.

He said: “We were happy to be bought by Titan as we believe in the objective of Titan, the firm is on a clear mission and wants to deliver better outcomes.”

The Titan acquisition “means we can fast track our business goals from 10-15 years to two or three”.

Upon completion of the acquisition, AHR will be rebranded as Titan Wealth International, which Burrows said will happen this side of the year (2024).

As Burrows added: “We want to evolve, and a name change and a rebrand is the way forward.”

Good morning. We have the first diplomatic row of the new Labour government: after Donald Trump accused the Labour party of interference to help Kamala Harris in the presidential election:

The complaint filed by Trump’s campaign to the independent Federal Election Commission accuses the Labour party of sending strategists and staffers to help the Democratic presidential candidate’s election campaign and says Harris has accepted the help. Keir Starmer, however, defended the aides, saying they were volunteering in their spare time.

The prime minister referred to the idea of Labour volunteers going over for pretty much every US election as “straightforward”. More on that below.

Technically correct, the best kind of correct

An inevitable consequence of being the most important democracy in the world is that outsiders will take a major interest in your elections. Just as we now watch elections in the US, the world elsewhere once did for the UK. Jawaharlal Nehru and Mahatma Gandhi listened to the results from the 1945 election and hoped that Clement Attlee, who they knew well from the 1930s and wartime period, would win the election, because they thought that he would make a better negotiating partner than Winston Churchill.

In 1964 Kenneth Kaunda, later to become Zambia’s first president, listened to the outcome of the UK general election and cheered every result “as if it were for the United National Independence Party [Kaunda’s party]”. (Though, as it happens, Kaunda would swiftly be disillusioned by Harold Wilson, who led Labour into its 1964 election victory, and the former British prime minister’s handling of Rhodesia’s unilateral declaration of independence.)

Global power has long since decisively shifted to Washington and now it is American elections that the world watches with bated breath. It’s long been a tradition for Labour to learn from the Democrats and vice versa. Kamala Harris uses the same phrase — “turn the page” — that Labour used in July, just as Tony Blair’s “New Labour” aped Bill Clinton’s “New Democrats”.

A similar dynamic holds across the democratic world. I often meet Conservative or Labour strategists who have honed their skills learning from sister parties in Canada, New Zealand, Australia or the US. Robert Jenrick talks frequently of the lessons that the UK Conservatives can glean from Pierre Poilievre, leader of the Canadian Conservatives.

There are plenty of strategists who have fought and won elections for centre-left and centre-right parties across the English-speaking world: Stan Greenberg on the left, Isaac Levido on the right, Lynton Crosby, and so on.

So Keir Starmer is wholly correct when he says it is normal for Labour party staffers and former Labour party staffers to volunteer their own time in US presidential campaigns.

But the big and important difference now is that Donald Trump is a very different kind of politician. In the unlikely event that Poilievre loses the next Canadian general election, Justin Trudeau, leader of the Liberals, would not freeze out a Jenrick-led British government. Clinton and John Major worked well on a range of issues, as did Tony Blair and George W Bush. Trump is mercurial, unpredictable and chaotic.

If Trump does return to the White House in November, that will, I think, be the defining moment in the life of the Labour government. Any hope of a return to “normal” politics will die alongside Kamala Harris’s presidential ambitions. Starmer’s government will have to find a new way of approaching the US-UK relationship: and what has, until now, been a “normal” exchange of volunteers between the two countries’ major centre-left parties may soon become a major diplomatic liability.

Now try this

During my holiday, I saw Francis Ford Coppola’s Megalopolis. It’s a glorious mess. Coppola is both the director, the producer and the main financial backer of a film that is a very, very personal art project. He has left a huge amount of himself out on the canvas. The resulting movie has, at times, the structure, pacing and underlying logic of a Saturday morning dream. In some scenes, both money and time appear to be running out. (I don’t know if the scenes in which it appears that a character has stumbled over their lines are intentional or a result of the stretched budget, it could go either way.)

But I have to say, I loved it: it is mad, in places it is bad, but I go to the cinema in the hope of seeing an artist’s vision, and I certainly got that. Danny Leigh’s more equivocal review is here.

Top stories today

• Upgraded | UK economic growth will accelerate this year and next as falling inflation and interest rates strengthen domestic demand, the IMF has said.

• Aid curtailed | The Treasury is preparing to slash spending on overseas aid in the Budget after refusing to match Tory-era top-ups to compensate for development cash spent on asylum seekers in the country, said people familiar with the matter.

• Grounded | Judges could impose house arrest as an alternative to jail as part a major review of sentencing aimed at easing the crisis in English and Welsh prisons. A fresh cohort of about 1,100 prisoners yesterday was released under emergency measures to free up cell space.  

• ‘Whole water sector has failed’ | Water regulator Ofwat could be overhauled or even replaced under the most far-reaching review of the industry since it was privatised 35 years ago. 

• The council fighting against insolvency | William Wallis heads to Hampshire to discover how, even in this relatively prosperous part of southern England, the council is facing the largest funding gap of any council in the country in 2025-26, at £175mn.