Reserve Bank of India (RBI) Deputy Governor K C Chakrabarty on Tuesday blamed the failure of microfinance institutions in Andhra Pradesh to their inability to provide loans in sync with customers’ capacity to repay. Microfinance institutions in Andhra Pradesh failed because they had not assessed the credit needs of the people properly, Chakrabarty said in a speech at the Visa-Financial Times conference on financial literacy on Tuesday. Chakrabarty said financial institutions that did not assess clients’ credit requirements, and also their ability to repay loans within the required time frame, were only working to digging your own grave. The deputy governor’s comments added another dimension to the role played by microfinance institutions in the failure of their business in Andhra Pradesh,along with the pressure of laws enacted by the state............
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
No comments:
Post a Comment