RBI relaxes NBFC-MFI rules: Positives and negatives -
August 6th, 2012
The Reserve Bank of India has relaxed guidelines for all non-banking financial company-micro finance institutions (NBFC-MFIs). The RBI has allowed MFIs to charge more than 26% as interest rate on loans given to borrowers. The central bank has also given MFIs five years to make full provisioning against bad loans.
In an interview to CNBC-TV18, Ramesh Ramanathan, chairman of Janalakshmi Financial Services analyses the new guidelines.