Sa-Dhan to review microfinance guardrails in April

SECTOR STRESS EASES

- KSHIPRA PETKAR

THE SELF-REGULATORY ORGANISATION (SRO) of the microfinance industry, Sa-Dhan, will meet in Mumbai on April 10 to review the guardrails introduced to curb borrower overleveraging, Paul Thomas, chairman of Sa-Dhan, and managing director and chief executive of ESAF Small Finance Bank, said.

“The guardrails we implemented have delivered results. Now that conditions are improving, we will assess whether some recalibration or leniency is warranted. All member CEOs will meet to take a re-look at the framework,” Thomas said. “We have already commissioned a study by Grand Thorton to understand the impact of these guardrails and will suggest the way forward.”

The self-regulatory body has over 230 members.