Our intent in framing these guidelines was built around the idea of customer protection. To achieve, the framework has incorporated five core principles, namely Addressing regulatory arbitrage with the introduction of a lender agnostic and activity-based regulation so that all the regulated entities engaged in microfinance pursue the goal of customer protection within a well-calibrated and harmonized set-up.
Protection of microfinance borrowers from over-indebtedness caused by granting of loans beyond the repayment capacity of the borrowers which, then, can potentially get manifested into coercive recovery practices. Enabling the competitive forces to bring down the interest rates by way of enhanced transparency measures. Enhancement of customer protection measures by way of strengthening them and extending them to all regulated entities.