At the same time, the growth of loans to households has been stagnating at subdued levels since the beginning of this year. The third challenge is the uncertainty around the on-going process of institutional reforms. While necessary, reforms do not come without risks.
In this context, I would like to draw your attention to Malegam Committee’s recommendation of “creation of one or more domestic social capital funds”. Customer protection and responsible finance Responsible finance is the most important lesson from the current episode. Given the vulnerability of their customers, MFIs need to be more mindful of their needs and capabilities.