India: MFIN Welcomes RBI Move to Harmonise Regulations for Micro Finance Lenders

Feb 2021
India, February, 05 2021 - Microfinance Institutions Network (MFIN) on Friday welcomed the Reserve Bank's decision to come out with a consultative document to harmonise regulatory framework for micro financiers.

RBI Governor Shaktikanta Das on Friday said the central bank will come out with a consultative document, harmonising the regulatory frameworks applicable to various regulated lenders NBFC -- MFIs, banks, small finance banks (SFB) and NBFC -- investment and credit companies -- in the microfinance space.

The central bank will come out with the document in March this year.

"This is a very important move as it will augur well for the sector as a whole and further safeguard the interests of the customers. MFIN looks forward to working closely with the RBI on this important initiative," MFIN CEO and director Alok Misra said in a release.

Considering the diversity of players in microfinance today, it is the need of the hour, and MFIN has been proactively working on this through its code of responsible lending (CRL), he added.

The industry association has also requested the Reserve Bank of India on the need for asset class-based regulation, Misra said.

MFIN has developed the 'Code of Responsible Lending (CRL) in Micro-credit' to bring different regulated entities, including NBFC-MFIs, banks, SFBs, NBFCs and non-profit/Section 8 MFIs, to agree and adopt a uniform common code for customer conduct.

As of now, the CRL has 113 signatories, representing 70 per cent of the market, the release said.


Research Analysis Tools

The fund indexes, institution benchmarks and other market information displayed here are all Symbiotics designed analysis tools, created in-house by our analysts and experts. Symbiotics has one of the oldest track records in microfinance investment analysis dating back to the late 1990s; its indexes and benchmarks have been regularly used as markers by investors, asset managers, financial institutions and practitioners. These, as well as several other research products, are available through the Research Account. Click on the link below to find out more.

Learn More