MP HC: Wife’s Refusal to Have Physical Relationship With Husband, Amounts to Cruelty  ||  Ori. HC: Re-Imprisonment of Prematurely Released Convict Can’t be Ordered Unless Release Challenged  ||  Ker. HC: IO Mixes Contraband Found in Separate Packs, Bail Granted to Accused Booked Under NDPS Act  ||  Tripura High Court: Accused Not Entitled to Bail on Mere Filing of Chargesheet  ||  Guj. HC: Student Allowed to Write Exams, Shortage of Attendance Condoned  ||  Ker. HC: AO Can’t Reopen Assessment in Block Period of 6 Years if Absence of Incriminating Materials  ||  Tel. HC: Existence & Validity of Arb. Agreement Must be Determined u/s 11(6) of A&C Act by Court  ||  Tel. HC: While Releasing Amount Under S. 19 of MSME Act, Reasons Must be Assigned by Courts  ||  Ker. HC: Settling Serious Crimes Like Murder, Rape Would Seriously Impact Society  ||  Del. HC: Mandate of Arbitral Tribunal Can be Extended by Court, Even After its Expiry    

Reserve Bank of India issues (Regulatory Framework for Microfinance Loans) Directions, 2022 - (14 Mar 2022)

Banking

Reserve Bank of India issues (Regulatory Framework for Microfinance Loans) Directions, 2022. The provisions of the directions shall apply to All Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks) excluding Payments Banks; All Primary (Urban) Co-operative Banks/ State Co-operative Banks/ District Central Co-operative Banks and All Non-Banking Financial Companies (including Microfinance Institutions and Housing Finance Companies).

Each RE shall put in place a board-approved policy for assessment of household income. Self-regulatory organisations (SROs) and other associations/ agencies may also develop a common framework based on the indicative methodology. The REs may adopt/ modify this framework suitably as per their requirements with approval of their boards. Each RE shall mandatorily submit information regarding household income to the Credit Information Companies (CICs).Each RE shall have a board-approved policy regarding the limit on the outflows on account of repayment of monthly loan obligations of a household as a percentage of the monthly household income. This shall be subject to a limit of maximum 50 per cent of the monthly household income.

Each RE shall put in place a board-approved policy regarding pricing of microfinance loans which shall, cover a well-documented interest rate modelfor arriving at the all-inclusive interest rate. Delineation of the components of the interest rate such as cost of funds, risk premium and margin, etc. The range of spread of each component for a given category of borrowers. A ceiling on the interest rate and all other charges applicable to the microfinance loans. The minimum requirement of microfinance loans for a Non-banking Financial Company -Microfinance Institution (NBFC-MFIs) also stands revised to 75 per cent of the total assets.

Tags : MICROFINANCE LOANS   FRAMEWORK   DIRECTIONS  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved