On the other side, both the MFIs and the banks that loaned funds to the MFIs were agitated about the security of the funds already lent, and more generally about the prospects for MFI activity in general. 9.
In October 2010, the Central Board of the Reserve Bank discussed the policy impasse arising out of this situation and decided to constitute a sub-committee under the chairmanship of one of the Board members, Shri Y.H. Malegam, to study the issues and concerns in the MFI sector.