RBI in its Statement on Developmental and Regulatory Policies announced, on Friday, October 4, 2019, raising the household income limit for borrowers of NBFC-MFIs from the current level of ₹ 1.00 lakh for rural areas and ₹ 1.60 lakh for urban/semi-urban areas to ₹ 1.25 lakh and ₹ 2.00 lakh, respectively.
The Y.H.Malegam sub-committee of Central Board of the Reserve Bank had recommended creating a separate category of NBFC, viz., Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI). RBI put in place a separate category NBFC-MFI in December 2011 as recommended by the Malegam committee with a detailed regulatory framework. The income and loan limits to classify an exposure as an eligible asset for NBFC-MFI were last revised in 2015.
In its press release, RBI said, “Taking into consideration the important role played by MFIs in delivering credit to those in the bottom of the economic pyramid and enable them to play their assigned role in a growing economy, it is proposed to revise these criteria”. RBI communiqué also said that the detailed guidelines in this regard will be issued shortly.
Bank customers can now withdraw cash from ATMs without using physical cards. Even if you…
Economic systems can be classified as Traditional Economies, command economies, market economies, and mixed economies.…
The analysis of financial statements means identifying a business establishment's financial strengths and weaknesses by…
The Reserve Bank of India issued draft guidelines to provide a harmonised prudential framework for…
RBI has recently issued two notifications. The first notification is about Margin for Derivative Contracts…
Economists may define the subject of economics in several ways considering different aspects of the…