Master Circular on Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs)
This circular outlines the directions for NBFC-MFIs, excluding RNBCs, effective from July 1, 2015, and updated as of April 20, 2016.
The circular defines NBFC-MFIs and outlines the regulatory framework, including entry point norms, prudential norms, and other regulations.
Entry Point Norms: Existing NBFCs and new companies must meet specific requirements to operate as NBFC-MFIs.
Prudential Norms: NBFC-MFIs must maintain capital adequacy and adhere to asset classification and provisioning norms.
Other Regulations: NBFC-MFIs must comply with regulations on pricing of credit, fair practices in lending, transparency in interest rates, and non-coercive methods of recovery.
Additionally, NBFC-MFIs must ensure compliance with conditionalities, improve efficiency, and adhere to corporate governance and other guidelines.
The circular also addresses MFIs acting as channelizing agents for social security schemes.
Chat with the Master Circular:
Download: Master Circular- ‘Non-Banking Financial Company-Micro Finance Institutions’ (NBFC-MFIs) – Directions