Introduction
Introduction:
In India, microfinance is primarily regulated by the Reserve Bank of India (RBI). In this tutorial, we’ll explore how the RBI acts as the sole regulatory authority for microfinance in the country.
1. Reserve Bank of India (RBI):
Role and Responsibilities:
The Reserve Bank of India (RBI) is the central banking institution and the sole regulatory authority for microfinance in India.
RBI formulates and implements regulations, guidelines, and policies to govern microfinance activities.
It supervises and regulates non-banking financial companies (NBFCs) that engage in microfinance operations.
RBI is responsible for setting interest rate caps and prudential norms to protect the interests of microfinance borrowers and maintain the stability of the sector.
