The emerging dynamics in the microfinance sector as well as the concerns around customer protection therefore call for a review of the regulations so that all the regulated entities engaged in micro finance pursue the goal of customer protection within a well-calibrated and harmonized set-up.
As you all may be aware; the Reserve Bank has recently come out with the Consultative Document (CD) on ‘Regulation of Microfinance’ seeking feedback from all the stakeholders. I wish to highlight some of the major aspects we are trying to address through this proposed framework. Over-indebtedness and Multiple Lending 12.