Where Angels Prey

Where Angels Prey is a novel by Ramesh S Arunachalam. Please refer to www.whereangelsprey.com for more information

Saturday, December 3, 2011

The special category of NBFC MFIs: Lessons for the Department of Non-Bank Supervision, RBI

Ramesh S Arunachalam
Without question, the present scenario, in the wake of Friday’s circular, places a huge burden of responsibility on the Department of Non-Bank Supervision and the RBI and for the sake of real financial inclusion, we sincerely hope that the department lives up to its roles and responsibilities with diligence, aplomb and efficiency

On Friday (2 December 2011), the Reserve Bank of India (RBI) created a special category of non-banking finance companies (NBFCs)—NBFC–MFI. The RBI must be congratulated for creating this new category as it explicitly recognizes microfinance as an important facet of the larger financial sector.

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1 comment:

  1. Thanks Ramesh for the timely input. There are some vital issues that seem to elude me. There are existing practitioners who are working in Society/Trust/Section 25 Company formats. Post April 1, 2012,
    1. Will they be permitted to continue operations as now?
    2. Do they need to convert their existing setup to NBFC_MFI?
    3. Alternatively, will they be asked to stop doing micro finance activities?
    Please advise.
    Santanu Sen