Micro Finance Institutions (MFIs) cannot charge more than 26 pc interest – RBI
PrintListen to this Article
The Reserve Bank has capped interest rates charged by micro finance institutions from small borrowers at 26 per cent, but opened for MFIs the bank credit line which was curtailed following the crisis faced by the sector in October, 2010.
The loan by the banks to MFIs for on-lending to small borrowers will fall under ‘priority sector’ category if the RBI guidelines are met. The detailed guidelines will be issued soon, the RBI Governor D Subbarao said while unveiling the annual credit policy.
Category : Banking | Comments : 0 | Hits : 999
Risks of leaving your bank account dormant
Are you also in habit of leaving your bank accounts unattended for long? Then, it's time to be alert. You may be deprived of entire money in your accounts by fraudsters. Howsoever rich you may be...
Today I am covering a very important provision in bank credit (working capital limit) which almost 100% of the people (even CAs and senior bankers) treat wrongly. Generally banks will compute d...
Fund diversion has always been a major problem in our banking system. It has been observed in all major cases of wilful default or fraud that the funds borrowed from banks have been diverted elsewhere...
Comments