‘MFIs must use 2022 ramework to up long-term asset quality’

The Reserve Bank of India expects lenders in the microfinance industry to utilise the central bank's framework on microfinance to improve long-term portfolio quality and welfare of borrowers, RBI Deputy Governor Swaminathan J. said at the MFIN event on Nov. 14 in Mumbai.

- Informist

The RBI had issued a revised regulatory framework for microfinance loans in 2022. The deputy governor advocated for reasonable pricing of microfinance loans, saying that boards of microfinance institutions should review spreads against cost of funds and operating efficiency, and should question outliers. In cases where lower funding rates or use of technology reduces operational costs, the benefit should