RBI aims to tackle microloan burden with new MFI rules
This repayment threshold is part of a slew of proposals to revamp the regulations on microfinance, which are crucial to bringing the bottom of the pyramid within the ambit of formal financing in an under-banked country.
RBI paper proposes to cap borrowers' repayment outgo, scrap lending rate cap in uniform MFI regulationThe Reserve Bank of India has suggested capping the total repayment outflow from a household to half of the annual income of the economically weaker households, which form the target segment for microfinance lenders, as part of a slew of proposals to revamp the regulations on microfinance.
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