RBI’s Proposed Regulatory Changes To
Create Level Playing Field; Provide
More Flexibility To NBFC-MFIs: ICRA

RBI Building (Source: BloombergQuint)

RBI’s Proposed Regulatory Changes To Create Level Playing Field; Provide More Flexibility To NBFC-MFIs: ICRA

Bookmark

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICRA Research Report

Lenders in the microfinance finance industry in India comprise not only non-banking financial company - microfinance institutions, but also NBFC - investment and credit companies (NBFC-ICC), scheduled commercial banks, small finance banks and others.

However, the Reserve Bank of India’s regulations for microfinance lending activities are applicable only to NBFC-MFIs while the other lenders are governed by the different regulatory frameworks applicable to them.

As the composition of the industry is tilted towards scheduled commercial banks and small finance banks, which have a majority share (~60%) of microfinance (excluding the self-help groups bank linkage programme) in the country while NBFC-MFIs have a share of ~30%, there is a need for a harmonised regulatory framework.

Click on the attachment to read the full report:

ICRA Thematic - MFI - June 2021.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.