Microfinance

Microfinance Links Digest 18/02/2010

Reserve Bank of India

Reserve Bank of India

RBI issues veiled threat to MFIs: Microfinance could soon lose priority sector lending status

India’s booming microfinance segment is under the scanner, with the Reserve Bank of India (RBI) issuing a veiled warning that it could be taken off the priority sector lending list of banks if the industry fails to improve its governance standards.

This was spelt out at a meeting in late January between senior RBI officials, representatives of Sa-Dhan—the association of Indian microfinance institutions (MFIs)—and some senior MFI managers from Karnataka, West Bengal and Andhra Pradesh.Rest of the article

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