Q.3) What are the regulatory changes the RBI seeks to make in the regulation of the microfinance sector proposed in its consultation document? Also give suggestions to strengthen the framework. (10 Marks)

“Mentor’s Comments”

  • https://www.financialexpress.com/opinion/microfinance-2-0-to-make-microfinance-regulation-better/2295124/
  • In the intro, mention the issue of different regulatory frameworks for NBFC-MFI and other lenders.
  • In the body, mention the recently released document by the RBI which seeks to make the level playing field for all the lenders through uniform regulations by removing limit of a maximum of two entities serving the customer, freedom to price the loan etc. In the suggestion mention revising income levels to increase capital creation, need for loan cap, allowing the use of Aadhar KYC to NBFCs etc.
  • Conclude by mentioning the RBI’s move will help the sector grow and contribute to the economy.

 

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Sehaj Singh
Sehaj Singh
2 months ago

Please check
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SUMITA DOWERAH
SUMITA DOWERAH
2 months ago

Payment Id: pay HFrdyJMOEZ9967. Please review, Sir.

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