The various initiatives taken by the RBI and the Central government will prune the profitability of micro finance companies and the scaling up of business will be very difficult. More importantly, the business is unethical. The licenses to new bank will be given with a rider - that they have to open a specific number of branches in un banked rural areas, which will make life more difficult for micro finance companies, as the banks can lend at a cheaper rate. Extending credit to the poor, is a socially-politically sensitive issue. The government, always takes policy measures, that will benefit the poor and not the finance companies.
micro finance institutions - REGULATORS STEP IN AGAIN(1 post)
Posted 6 years ago #
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