RBI to encourage microfinance to curb money-lenders
Reserve Bank plans to provide more assistance to SelfHelp Groups (SHGs) and Microfinance Institutions (MFIs) to curb money-lenders, a top RBI Official said on Wednesday.
By PTI |
MUMBAI: Reserve Bank plans to provide more assistance to SelfHelp Groups (SHGs) and Microfinance Institutions (MFIs) to curb money-lenders, a top RBI Official said on Wednesday.
"There is a need to propel the growth of SHGs and MFIs in order to bring down the influence of money-lenders over poor borrowers...RBI is taking regulatory and strategic initiatives to achieve this goal," RBI's Deputy Governor, Usha Thorat, told a seminar, here.
The apex bank is mulling guidelines to allow banks to open savings bank accounts for SHGs and for the de-regulation of interest rates for SHGs, MFIs, Non-Banking Financial Companies, Regional Rural Banks and Urban Co-operative Banks, Thorat said.
With a view to facilitate remittences from urban centres, RBI is understood to have plans to come up with guidelines to simplify KYC norms for small value accounts which would help urban-migrants to avail banking services.
"There is a need to propel the growth of SHGs and MFIs in order to bring down the influence of money-lenders over poor borrowers...RBI is taking regulatory and strategic initiatives to achieve this goal," RBI's Deputy Governor, Usha Thorat, told a seminar, here.
The apex bank is mulling guidelines to allow banks to open savings bank accounts for SHGs and for the de-regulation of interest rates for SHGs, MFIs, Non-Banking Financial Companies, Regional Rural Banks and Urban Co-operative Banks, Thorat said.
With a view to facilitate remittences from urban centres, RBI is understood to have plans to come up with guidelines to simplify KYC norms for small value accounts which would help urban-migrants to avail banking services.
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