The NBFCs have been in the forefront in the adoption of innovative fintech based products and services which are transforming the ways of carrying out credit intermediation and extending financial services. As an enabling regulator, the Reserve Bank has also been on the forefront of creating an environment for growth of digital technology.
Through this approach, the banking system can more effectively reach a larger number of e-poor. This would complement other microfinance delivery channels like credit cooperatives and NGOs that have their own strengths and weaknesses. Three important provisions in the General Banking Law (GBL) of 2000 formally authorized the BSP to fully support microfinance.