Calcutta HC: Cannot Deny Electricity Solely on Ground of Not Furnishing Ownership  ||  Madras HC: Cannot Hold Protests at Whim and Fancies  ||  Bombay HC: March of Development in Mumbai Cannot Trample Heritage Structures  ||  P&H HC: Seriousness of Offence of Drug Trafficking Can’t Trample Constitutional Safeguards  ||  Bombay HC: Cannot Deny ‘Right to Life’ to Accused who is in Custody  ||  Ker HC: Action Must be Taken against Private Nursing Colleges Not Paying Teachers as per Regulations  ||  Kerala HC: Can Make IRCTC Responsible for Managing Waste in Railway Stations  ||  J&K HC: Magistrate Can Revoke Orders or Drop Proceedings if No Case is Made Out  ||  Kerala HC Directs Placing of Draft Guidelines for Dealing With Snake Bites in Schools  ||  J&K HC: Cannot Equate Irregular Appointments with Illegal Appointments    

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 2025 - All Rights Reserved