The Reserve Bank of India on Thursday tightened norms on client loans, directing banks and shadow lenders to put aside extra capital as buffer, because it seeks to verify a runaway rise in unsecured lending in Asia’s third-largest financial system.

The central financial institution elevated the chance weights in respect of client credit score publicity of economic banks, excellent in addition to new, “including personal loans, but excluding housing loans, education loans, vehicle loans and loans secured by gold and gold jewelery, by 25 percentage points to 125%,” it stated in an announcement on its web site.