Income & loan limits for NBFC-MFI increased by RBI

Under statement on Developmental and Regulatory Policies, the RBI had announced, “Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI) in the wake of the Andhra Pradesh micro finance crisis in 2010, a Sub-Committee of the Central Board of the Reserve Bank was constituted to study issues and concerns in the MFI sector.”

It was decided, based on the recommendations of the Committee, to create a separate category of NBFC, viz., Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) and a detailed regulatory framework for NBFC-MFIs was put in place in December 2011. The income and loan limits to classify an exposure as eligible asset were last revised in 2015.