RBI to give self-regulatory status to microfinance industry associations

.....RBI’s decision, announced in a statement issued by the central bank, is based on recommendations of an expert panel chaired by Y.H. Malegam on regulating the microfinance sector. MFIs are firms that loan small amounts to low-income borrowers and source money from commercial banks to do business. India’s micro-credit sector has two major industry associations—microfinance institutions network (MFIN) and Sa-Dhan. Officials at both bodies said they will apply for SRO status...........

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