Brokerages laud new MFI norms for banks; details here

The Reserve Bank of India (RBI) has brought banks under the same rules as non-banking financial companies - microfinance institutions (NBFC-MFIs) and the brokerages have hailed this move.

Until now the rules which were called the Malegam Committee Rules on MFIs, there were many rules - how many lenders can lend to one person, what is the qualifying household, all those rules applied only to NBFC-MFIs, now they also apply to banks which is big for the MFIs because otherwise banks were not getting controlled and that’s why it’s a big positive for MFI sector.