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AI & Digital Lending
…ting model AI is visible as a platform, operating model or enterprise-scale capability. Band B — AI embedded in credit, risk and collections AI / analytics is visible in underwriting, fraud, EWS, monitoring, collections or recovery. Band C — AI-enabled service and operation…Read in full
AI & Digital Lending
…vice interest.The stock and receivables will support the working-capital cycle.The promoter will remain transparent.The risk will remain within acceptable bounds. Monitoring is the process of testing whether that view is still valid. If credits reduce, utilisation hardens,…Read in full
AI & Digital Lending
…ST analysers, bureau tools, MCA extractors, fraud checks, legal search tools, financial spreading tools, dashboards and risk-intelligence platforms. Companies such as Perfios, ScoreMe, SaveRisk, Probe, Nexensus and similar platforms play an important role in this ecosystem.…Read in full
AI & Digital Lending
…repeatedly performing a cycle: It sources customers. It captures information. It understands the borrower. It assesses risk. It documents conditions. It disburses. It monitors. It collects. It learns from outcomes. In many institutions, these stages operate like separate c…Read in full
AI & Digital Lending
…hether a document is digital. It will be defined by whether the institution can understand what the document says, what risk it carries, what exception it reveals, what action it should trigger and what should still be left to human judgement. That is the shift from paperle…Read in full
Fraud, Ethics & Governance
…eed. That is why this case is both useful and unsettling. It does not give us a clean ending. It gives us an unresolved risk. Why this matters to bankers In property-backed lending, we often take comfort from documentation. Registered sale deed. Title chain. Legal opinion.…Read in full
Fraud, Ethics & Governance
…ful: Even after a lender takes physical possession, a tenant claim can pull the matter back into litigation. Possession risk does not always end when possession is taken. Sometimes it begins again after that. What These Two Cases Tell Bankers The Axis Bank case shows a bank…Read in full
Fraud, Ethics & Governance
…gements or permissions that do not support the proposed use. These are not technical irritants. They are enforceability risks. The worst place to discover a structural defect is after disbursement. Lessons for Recovery Teams For recovery teams, the lesson is equally importa…Read in full
AI & Digital Lending
…sues, deviations, high DD-PD categories, and sampling outcomes. That itself was an early recognition that scale changes risk. AI simply pushes that principle much further. Anonymity: The Hidden Threat Anonymity changes the game because the distance between act and actor inc…Read in full
Credit & Underwriting
…ilities . A typical lending workflow today includes: Information Gathering → Data Aggregation → Algorithmic Screening → Risk Coding → Product Classification → Automated or Manual Underwriting → Offer Creation → Disbursement. These systems perform an important role. They ens…Read in full
Fraud, Ethics & Governance
…e objective was simple but powerful. Create a system where banks report early signs of borrower stress so that emerging risks are visible across the financial system . What CRILC Framework Was Designed to Capture Under this framework, borrower accounts are categorized based…Read in full
AI & Digital Lending
…nding decision follows a clear sequence. Information gathering Due diligence Application of business rules aligned with risk appetite Creation of the credit offer Acceptance and disbursement. However, modern lending systems have introduced a sophisticated operational layer…Read in full
AI & Digital Lending
…n-making structures in financial institutions is shaped by two competing forces: Speed of decision-making and degree of risk control . Institutions that prioritize control often centralize authority. Institutions that prioritize responsiveness distribute authority or automa…Read in full
Fraud, Ethics & Governance
…oretical. It is operational. For Branch & Relationship Managers “Interest serviced” no longer guarantees “no procedural risk.”Soft stress signals deserve earlier escalation. For Recovery & Legal Teams Speed and sequencing discipline are strategic tools. Section 95 creditor…Read in full
Fraud, Ethics & Governance
…hing features: High design-to-gold ratio Frequent use of stones, solder, alloys Precision sizing → cutting and resizing risk Non-uniform recoverability For the banker: rings look efficient In reality: rings are risk-dense objects 3. How Rings Are Made (Structural Intricacie…Read in full
Fraud, Ethics & Governance
…t as a single pledge, but as a sequence Not emotional value, but renewal probability Bangles as indicators of: duration risk income instability gradual stress, not shock How a Borrower Feels Bangles “Just one more bangle” Lower emotional resistance than necklaces Incrementa…Read in full
Fraud, Ethics & Governance
…hick Kadas / Heavy Bangles Value in mass Efficiency C. Hollow / Lightweight Bangles Bulky look, low gold Value illusion risk D. Stone-Studded Bangles Non-recoverable stone content E. Matched Sets Cultural sets (6, 8, 12 pieces) 4. How a Banker Sees Bangles vs How a Borrower…Read in full
Credit & Underwriting
…How a Banker Sees the Necklace (Cold, technical, recoverability-driven) Net gold weight Purity (22K / 916) Construction risk Melt value LTV eligibility Implied message “This is collateral.” How a Borrower Feels the Necklace (Warm, emotional, future-oriented) Wedding memory…Read in full
Fraud, Ethics & Governance
…d last-mile liquidity. Banks, in turn, saw them as efficient conduits: asset-backed, cash-generative, and seemingly low risk. Over time, however, something fundamental changed. Gold stopped behaving like a self-liquidating retail collateral and began functioning like workin…Read in full
Fraud, Ethics & Governance
…his is not always an RBI prohibition Often it is: Card network rules Issuer-level Merchant Category Code (MCC) policies Risk appetite decisions Banks restrict EMI on jewellery because EMI = structured credit , not mere payment convenience. A credit card swipe is the custome…Read in full
Fraud, Ethics & Governance
…rmitted Jeweller savings schemes Commercial activity (with caveats) The regulatory stance depends not on metal , but on risk behaviour . The prudent LTV rule for gold jewellery loans has been explicitly updated under the RBI’s 2025 gold loan framework , and it’s important t…Read in full
Fraud, Ethics & Governance
Gold Jewellery Business Series - Episode 12 If risk in gold jewellery lending surfaces at exit, the harder question is this: why does the system continue to behave as if exit will never be tested? Epis…Read in full
Fraud, Ethics & Governance
The Legal Lifecycle: Where Gold Loan Risk Actually Surfaces Gold Jewellery Series - Episode 11 PART A — WHEN GOLD LOANS ENTER THE LEGAL DOMAIN ⚖️ Trigger Points (Not Defaults) Gold loans ente…Read in full
Tractor & Rural Finance
Gold Jewellery Business Lending – Episode 10 An Empirical Examination of Risk Through Bank and Borrower Behaviour Stories from the Balance Sheet: What gold loan portfolios reveal when you stop reading NPAs and start reading con…Read in full
AI & Digital Lending
…umbers on a spreadsheet or dry reports stacked in a dusty cabinet. It’s a living, breathing ecosystem, full of stories, risks, and opportunities. And if you want to truly understand it, you need more than just data—you need perspective. That’s where Vivek’s unique perspecti…Read in full
Tractor & Rural Finance
An Empirical Examination of Risk Through Bank and Borrower Behaviour JEWELLERY BUSINESS SERIES - Episode 9 Across Indian banks, gold jewellery loans typically form just 2–10% of tota…Read in full
Fraud, Ethics & Governance
Jewellery Business Series - Episode 8 Not how loans are sanctioned, but how risk quietly travels. Act 1: The Customer Walks In A jeweller walks into a bank branch. He is profitable. He has customers. He has gold moving every day.…Read in full
Fraud, Ethics & Governance
…gh public reporting, balance-sheet signals, and enforcement timelines — what I call the: Gold Timing Mismatch Pattern A risk pattern where money precedes the asset , creating temporary comfort that reverses under stress. The Pattern — Broken into Components Across cases, fi…Read in full
Fraud, Ethics & Governance
…ces rise sharply Gross margins stay flat or improve But inventory holding period is long What this tells you Gold price risk is not being absorbed honestly. Likely scenarios: Gold not yet bought Or cheaper duty-free gold substituted 🔎 Ask : “When was gold actually purchase…Read in full
Fraud, Ethics & Governance
Jewellery Business Series - Episode 5 The Schemes Around Gold — and the Risks They Don’t Advertise Gold has always been marketed as safety. But the moment it is wrapped inside a “scheme”, the risk quietly shifts—from the jewel…Read in full
Credit & Underwriting
…urers, handle inventory like owners, but behave like intermediaries. This is the grey zone of jewellery lending — where risk does not disappear, it merely relocates. Most stress in jewellery portfolios does not originate from: pure retailers, clear manufacturers, or transpa…Read in full
Tractor & Rural Finance
…classify themselves by: What they sell Where they source How busy the shop looks Both approaches miss the real axis of risk. The true archetype of a jewellery business is determined by just three questions: Who economically owns the gold? Who bears price and design risk? W…Read in full
Credit & Underwriting
…ch longer process . By the time a customer pays, capital has already been: committed, converted, locked, and exposed to risk. Gold Bar → Casting → Polishing → Stone Setting → Finished Ornament Day 0 Day 5 Day 12 Day 20 Day 30 CASH MYTH Where cash really gets stuck 1. Gold i…Read in full
Fraud, Ethics & Governance
…cation Table of Ornament Families (Gold Bar to Ornament) How Different Gold Pieces Behave as Inventory, Collateral, and Risk Gold Bar / Classification © Vivek Krishnan | The Vivek Perspective | 2025 Ornament Family PSU Banks Private Banks Regional Banks SFBs Cooperative Ban…Read in full
Fraud, Ethics & Governance
…reporting tags and regulatory classifications are included. And because each field is tied to compliance, reporting or risk — no one dares to touch them . Over time, what happens? Dropdowns expand like a banyan tree Data interdependencies multiply Old exceptions become per…Read in full
AI & Digital Lending
A Risk Philosophy for a Digital Credit World In my early years at Sundaram Finance , my seniors and mentors taught me a line I have never forgotten: “Nethth…Read in full
Fraud, Ethics & Governance
…alypse. They do not ask: Was the assessment sound? Were the documents correct? Did we serve the customer? Did we manage risk? They only ask: “Why is the dashboard not green?” Their day revolves around downloads, screenshots, pivot tables, and filters — while real process im…Read in full
Fraud, Ethics & Governance
…is the first and last line of defence against corruption. As someone who has spent nearly three decades in banking and risk, I can say that vigilance is not an event — it’s a mindset. Because in our world, where trust is both the product and the currency, every act of inte…Read in full
AI & Digital Lending
…isbursement was seen as the first “real exposure” moment. Auditors tested pre-drawdown , not pre-sanction . Why This is Risky Exposure begins at sanction , not disbursal — a lapsed or fake LEI can already taint the record. Regulatory misalignment: RBI circular (Dec 2020, up…Read in full
AI & Digital Lending
…y levers. Let’s explore how core challenges like cash flow volatility, over-collateralisation, and market concentration risk combine uniquely here—and what practical solutions can be deployed now. 1. Cash Flow Volatility: The Immediate Danger Pulse of the Problem: MSME expo…Read in full
Credit & Underwriting
…ns are harder to service as cash flows tighten. According to CRISIL , nearly 25% of India’s textile exports could be at risk over the next six months, with smaller exporters carrying the heaviest burden. One cluster association in Tiruppur estimates that up to 30% of smalle…Read in full
AI & Digital Lending
…ted Learning has been actively explored and piloted in banking and financial services , especially for fraud detection, risk scoring, and credit modelling . a) Fraud Detection Consilient (2025): Building FL-driven fraud detection models for correspondent banking networks to…Read in full
AI & Digital Lending
…ower walks away, and a few weeks into this, teams quietly push checks to post‑sanction or bypass them on so‑called “low‑risk” files. This isn’t malice—it’s friction. And it’s why policy intent (use fraud databases) often bows to the pressure of targets. Yet, let’s be clear:…Read in full
AI & Digital Lending
…er credit via digital onboarding , cash‑flow lending , guarantee schemes (CGFMU & ECLGS covering ₹6. 28 lakh cr) Higher risk appetite , especially by PSBs leveraging guarantees to include subprime or new-to-credit MSMEs But in Practice: Many small/micro businesses still lac…Read in full
Fraud, Ethics & Governance
Policy Vs Practice Series Policy Intent When the SARFAESI Act was introduced in 2002, it was hailed as a game-changer. For the first time, banks in India could enforce security interests without the long wait of civil courts . The intent was clear: empower len…Read in full
Fraud, Ethics & Governance
…PIT) Ratings adjust quickly to reflect latest conditions — both positive and negative. When you need a real-time credit risk signal, especially for short-term decision-making. TTC is like judging a person’s health based on their lifelong habits and records. PIT is like judg…Read in full
Fraud, Ethics & Governance
…in booms, shrinking in downturns. Banks, NBFCs, and even fintechs get caught in this rhythm. The problem? It amplifies risks when the economy slows and starves good borrowers just when they need liquidity the most. In good times… Risk appetite increases Underwriting relaxe…Read in full
Fraud, Ethics & Governance
…he intended effect — at least in the short term. Liquidity alone doesn’t guarantee credit flow; confidence, demand, and risk appetite matter just as much. ♻️ Why the Cycle Repeats We’ve seen this movie before. In 2020, in 2015, even in 2009.The RBI still uses the same rate-…Read in full
Tractor & Rural Finance
…after first milestone. Now: Milestone gap > 15 days kills Mode 2 feasibility → Mode 1 becomes default, even if bank risk appetite is lower in early stages. Policy vs Practice: The Gap Policy intent: Faster booking, cleaner risk-sharing, reduced warehousing risk for NBFC…Read in full
Credit & Underwriting
…from credible news and regulatory sources. They are presented solely for educational purposes in the context of credit risk awareness and not as a comment on current financial health or creditworthiness.Read in full
AI & Digital Lending
Beyond Ratios Series In today’s risk committees and appraisal notes, a dangerous trend is setting in — ratios rule, narratives are ignored . 🧾 Credit officers are asked: “Is the Current…Read in full
AI & Digital Lending
…: Many MFIs aren’t full FIUs, or lack systems to securely process AA data. This limits AA’s legal utility. c. Liability Risks : If data is incomplete or misunderstood — who’s accountable: the AA, FIU, or MFI? d. Data Protection : With the Digital Personal Data Protection Ac…Read in full
AI & Digital Lending
…y, many banks do not actively process AA data. Some reasons: Legacy Core Systems : Not AA-ready for seamless data fetch Risk Aversion : Preference for audited/verified static documents Customer Reluctance : Users unwilling to give digital consent or unaware Limited Internal…Read in full
AI & Digital Lending
…ctures, and it provides banks a verified path to underwrite thin-file borrowers without entirely discarding traditional risk models.Read in full
AI & Digital Lending
…the income seasonal or repeatable? How do we know she isn’t just recycling money through mule accounts? These are real risks. But the answer lies not in rejection, but triangulation. 4. Science of Triangulation and Behavioral Signals Data Source Signal Inferred UPI Trail V…Read in full
AI & Digital Lending
…evenue trails, but by a maze of ratios, margin assumptions, and stock statements. It’s a framework meant to standardize risk — but what if that very framework is fundamentally flawed? The dominant narrative in credit underwriting still worships the “current ratio,” the “tur…Read in full
Fraud, Ethics & Governance
…are often fully drawn and renewed perpetually — blurring the line between contingent credit and permanent debt. 📍 The Risks & Governance Gaps — Why This Matters On the surface, CC/OD facilities appear to work well for everyone — borrowers get easy, flexible funding, banks…Read in full
AI & Digital Lending
…office All instructions logged with audit trail No documented compliance trace visible Cross-verification by compliance/risk unit Familiarity and status bias overrode escalation norms Enhanced Due Diligence for public office FDs Trusted visual cues (letterhead, seal) instea…Read in full
AI & Digital Lending
…res to each claim based on behavioral proximity to verified claimant patterns — enabling partial refunds with low fraud risk. 🗃️ 3. Village Panels for Testimony Claim Submission: Claimants without complete documents submit a signed affidavit declaring their past deposit. C…Read in full
Fraud, Ethics & Governance
Opening Scene Mumbai, June 2025. Dr. K, a 73-year-old retired cardiologist, receives a video call. A woman, fluent in English, claims to be from TRAI. Moments later, a uniformed officer appears on screen. He shows Dr. K a document with the Mumbai Crime Branch…Read in full
Fraud, Ethics & Governance
How artificial deadlines make us bypass logic and fall into deception. 🧾 REAL STORY: A Missed Package, A Costly Click Kochi, 2023 Rajesh, a small business owner, received an SMS on a busy Monday morning: “Blue Dart: Package delivery failed due to incorrect KY…Read in full
Fraud, Ethics & Governance
Curiosity-driven trust — when the urge to know overrides the instinct to pause. REAL STORY: The Email That Felt Too Specific Hyderabad, 2023 Priya, a 29-year-old HR executive, received an unsettling email: “Final Notice: Your resignation approval letter is pen…Read in full
Fraud, Ethics & Governance
…sts, advisors at weddings and funerals. They’re trusted — implicitly . So when a teacher offers a scheme — we don’t see risk. We see a safe face attached to a sacred role . This was truth bias wearing cultural camouflage . You didn’t just trust Ma’am. You trusted the instit…Read in full
Fraud, Ethics & Governance
When Misinformation Comes in Familiar Fonts He didn’t have a title.He didn’t wear a uniform.He didn’t even show his face. Yet, during the early days of the pandemic, his voice message went viral across Tamil Nadu: “Don’t take paracetamol — it’ll worsen COVID.…Read in full
Fraud, Ethics & Governance
(Based on true events in Kolkata, 2021) – When the Seal of Science Was Forged In June 2021, as India reeled from the brutal second wave of COVID-19, a peculiar vaccination camp was set up in Kolkata’s Kasba locality . The banners bore the logo of the Kolkata M…Read in full
Fraud, Ethics & Governance
(Based on the real 2019 Hyderabad “Fake IAS” marriage scam) – When Authority Becomes the Mask of Deception – He arrived in an SUV with a red beacon on top. Symbol of Authority He carried himself like someone used to deference — fluent English, structured speec…Read in full
AI & Digital Lending
(Based on the true story of the Susi Emu Farms scam, 2006–2012) If you drove past the outskirts of Perundurai , in Tamil Nadu’s Erode district, sometime around 2010, you’d have seen an unusual sight — acres of open land lined with tall wire fencing, hundreds o…Read in full
AI & Digital Lending
…credit first through digital platforms, often via Buy Now Pay Later (BNPL) or short-term personal loans. But here's the risk: A study by NITI Aayog in 2022 warned that algorithmic decision-making may amplify socio-economic bias , especially when alternative data like geoloc…Read in full
AI & Digital Lending
…ploring RURAL MARKETS and discussions meandered into Tractor Finance and how it was a fraudulent business to get into. “Risky” – I could accept. Yet here was a champ out-casting a product I held close to my heart. I did not respond… My thoughts echoed strong albeit the smal…Read in full
Tractor & Rural Finance
…ormance than many NBFCs. Wanting to know more, I asked " Ok, So what are you getting at ? " He quickly responded - " My risk is lower ".. I was quick to respond - " There I differ, my friend ! " One of most misunderstood models is that of funding backed by security / collat…Read in full
Tractor & Rural Finance
Written Originally on Jan 7, 2018 One of the most fascinating aspects of the tractor is the way in which power gets transmitted effectively from the front of the tractor to the rear end. In the search of understanding the same, spent quite some time visiting U…Read in full
Tractor & Rural Finance
Written Originally on June 12, 2017 “ What is Risk ? Can you define it for me ? “ was the question asked by a highly experienced panelist, to a boy with probably 1/4th his experience. As the boy went…Read in full
Tractor & Rural Finance
…nd why ?" The choice would be Credit - The prime reason being the fact that Credit is the point where actual exposure / risk taking is initiated. It is the entry point into the financier's system. We are looking at the this from the traditional function based assessment. Ma…Read in full
Tractor & Rural Finance
…opography, etc. 2. Anchoring as a feedback to the Policy Making Department / Strategic Teams, providing key inputs with Risk Weights and Criticality. Regular Sampling of Cases analyzed for patterns. These Patterns refer to criteria which have been found as the critical reas…Read in full
Tractor & Rural Finance
Originally Written on April 1, 2017 - Reproduced as is, and may represent some facts relevant to those times. Yet the concepts are still strong and valid. One of the hot topics that gets discussed when many fellow colleagues handling similar portfolios meet is…Read in full
AI & Digital Lending
AI-driven lending is fast, digital, and convenient —but are borrowers really aware of the hidden risks? Interest rates that dynamically change without notice Hidden processing & penalty fees buried in fine print Arbitration clauses that block legal re…Read in full
Fraud, Ethics & Governance
…lished. The entire process is a time consuming one and painful for the financier or lender. He has lent money, runs the risk of not receiving it back, is accountable to his investors / public, and has also got to act responsibly adhering to the laws of the land and is expec…Read in full
Fraud, Ethics & Governance
…ers have no choice but to adopt this as a start-point for our business. So every attempt of a Credit Underwriting, RCU, Risk Modelling has a limitation in assessing the real image of a prospective. This was most felt earliest in the field of Insurance Underwriting, and toda…Read in full
Leadership & Reflection
…e are no straight answers to the first part of where to position ourself and would largely depend on the aggression and risk appetite, the second part does have some real time guidelines. At this juncture, I would like to narrate an interesting perspective given to me over…Read in full
Credit & Underwriting
…y Assumptions / Preparatory to Credit Assessments (b) Objective of conducting credit assessments Both these seen from a Risk Officer’s view, which would encompass Sales, Credit, Operations, Marketing, Collections, Risk / Policy Governance, and Risk Containment (Frauds / Vig…Read in full
Leadership & Reflection
…erent, depending on which is the comparison base. Many successful ventures across the world have their roots traced to “RISKS” taken by its founders / trend setters. In our field of farm equipment, we, today, gloat over the adoption of Harvesters. There was a point in time,…Read in full
Tractor & Rural Finance
…a grid While all of them provide us a basis for funding and give us an intrinsic value, each financier has a different risk appetite, a different market to cater to, and a different strategy. Hence, determining the funding amount is critical. In the current day context, th…Read in full
Leadership & Reflection
…y back bone of Self Help Groups / Joint Liability Group / Special Purpose Groups. The progressive type of farmer is the Risk Taking kind and hence will try newer pastures to make more out of given sources. They are also Innovators, influencers and people who took steps in e…Read in full
Tractor & Rural Finance
…mplated while deciding on an algorithmic approach : How do we judge Agri Business Customers ? How is an Finance Company Risk Quotient translated into Metrics ? Further, how do we look at metricizing the Risk Appetite of the company. Table of Tolerances ? A defined assessmen…Read in full
Credit & Underwriting
…rmer for a loan, is prompted to ask 3 - 4 pointed questions, which when fed into my logic / algorithm, would throw up a risk quotient, which would translate itself into a "funding exposure permissible" - Right there, on the field, within minutes. In the days of the yore, we…Read in full
Tractor & Rural Finance
…-. This in itself is a trigger that warrants any financier to take steps prudently. The entire business of SHG is about risk taking and organizing your collections. Yet, the goal of the group is towards Rs. 500000/- and the highlight is that this group got its Rs. 500000/-…Read in full
Credit & Underwriting
I was quite influenced by a training on Fraud Detection and Prevention recently, where a point came up about "Triggers" losing relevance with time. This was when the Trainer pointed to the underlying principle rather than Trigger in itself. The Triggers change…Read in full