The Economic Advisory Council to the Prime Minister on 15 November 2010 suggested and pushed for a regulatory mechanism for the microfinance sector. The microfinance sector in the last few months had to paddle through rough weather for charging high interest rates and strong-arm loan recovery methods. The panel asked MFIs to restructure their business practises. The panel felt that MFIs immediately need to modify some of their lending practices to strengthen their link with the banking system. It is felt that greater linkage between banks and self-help groups and expansion of the business correspondent model would ensure a surge in the microfinance sector.
Regulatory Mechanism for the Microfinance Sector Suggested
By Jagranjosh
Mar 14, 2011, 15:04 IST
Indian PM's Economic Advisory Council suggested regulatory mechanism for the microfinance sector.
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