A microfinance loan is defined as an unsecured loan granted to a household whose annual household income does not exceed INR 300,000. For this purpose, a household is defined as an individual family unit, i.e. the husband, wife and their unmarried children. All unsecured loans, regardless of end-use and type of request/processing/disbursement (through physical or digital channels), granted to low-income households, i.e. households with an annual income not exceeding INR 300,000, are considered microfinance loans. In order to ensure that the microfinance loan is unsecured, the loan must not be tied to a lien on the borrower`s deposit account. Renewables has a board-approved policy to ensure flexibility in the repayment periodicity of microfinance loans in accordance with borrowers` requirements. Gallardo, Joselito S. A Framework for the Regulation of Microfinance Institutions [Washington, D.C.: World Bank, Financial Sector Development Department, 2002] Web.
lccn.loc.gov/2002615745. For the purposes of these Instructions, the above-mentioned entities are hereinafter referred to as “regulated entities (REAs)”. (i) all commercial banks (including small financial banks, local banks and regional rural banks), with the exception of payment banks. (ii) All primary (municipal) cooperative banks/state cooperative banks/district central banks. (iii) all non-bank financial enterprises (including microfinance institutions and housing finance companies). The instructions will enter into force on 1 April 2022, subject to the following provisions: The provisions of these instructions apply to the following companies: 14. In March 2022, the Reserve Bank of India (“RBI”) published the Governing Directions on “Reserve Bank of India Directions (Regulatory Framework for Microfinance Loans), 2022” (“Directions”). Citations are automatically generated from bibliographic data for ease of use and may not be complete or accurate.
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