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RBI relaxes NBFC-MFI rules: Positives and negatives

Posted: Mon Aug 06, 2012 1:53 am
by epicresearch
The Reserve Bank of India has relaxed guidelines for all non-banking financial company-micro finance institutions (NBFC-MFIs). The RBI has allowed MFIs to charge more than 26% as interest rate on loans given to borrowers. The central bank has also given MFIs five years to make full provisioning against bad loans.

In an interview to CNBC-TV18, Ramesh Ramanathan, chairman of Janalakshmi Financial Services analyses the new guidelines.