This made sense in terms of economic logic because in the long run it is only a nominal variable such as the rate of inflation (or nominal GDP) that can be influenced by monetary policy.
Nevertheless, the roll out of the new regulatory regime has run into some bottlenecks. Some MFIs are unable to comply with the qualifying asset criterion for registering as a NBFC-MFI, and therefore banks are reluctant to make fresh loans to them as such loans do not qualify as priority sector lending.