'The long term strategy is that this government wants to create a second class citizen list.'
Mint Road, on December 21, 2023, flagged the role of self-regulatory organisations (SROs) in strengthening the compliance culture in regulated entities (REs) and providing a consultative platform for policymaking. It also decided to issue an omnibus framework for SROs.
In the Union Budget for Financial Year 2023-24 (FY24), Finance Minister Nirmala Sitharaman had held forth on the need for better governance and investor protection in the banking sector. She had proposed certain amendments to the Reserve Bank of India Act (RBI Act), 1934; the Banking Regulation Act (BR Act), 1949; and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
'We need to be far more careful given the fact that while this is group lending, it's essentially unsecured.'
Industry fears waiver of interest on interest would distort credit culture, may encourage borrowers who can pay to defer repayment.
For smaller MFIs, resuming operations is more difficult because they haven't got any fresh bank credit sanctioned from their lenders.
A bunch of CEOs in their mid-30s and early 40s are trying to rectify the scenario where shady lending applications trap hapless borrowers with astronomically high interest rates and even bodily harm if the money was repaid. Anup Roy reports.
A vast majority of borrowers are in the essential services' supply chain with tiny and micro businesses, and this has sprung back.
One of the factors behind the rise in securitisation deals was State Bank of India's (SBI) decision to buy portfolio worth Rs 45,000 crore from NBFCs
Micro-finance institutions (MFIs) are planning to take legal action against YES Bank's move to recall a part of its loans to them.
Credit Information Bureau India Limited has entered into an agreement with 31 leading micro finance institutions to set up a credit information bureau for MFIs.
In December 2016, RBI had granted additional 60 days for repayment of certain loans
Industry experts estimate that demand for loans from the sector outstrips supply by more than $80 billion.
While the total disbursement of housing loans by PSBs as well as HFCs witnessed a deceleration in 2016-17, there was significant growth for the lower slabs
MUDRA bank will help microfinancing firms to lend more.
New players show up after 3 years; northern states take lead in loan growth.
Even today, many MFIs already distribute pension and micro insurance products to low-income households.
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