Strengthening credit for bottoms of economic pyramid, RBI raises household income limits of NBFCs, MFIs

News Bharati    09-Nov-2019
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Mumbai, November 09: Aiming to strengthen credit to those at the bottom of the economic pyramid in rural areas, the Reserve Bank of India on Saturday has increased the household income limits for borrowers of Non-Banking Financial Companies (NBFCs) and microfinance institutions from Rs 1 lakh to 1.25 lakhs.

 
 
"The limit has also been increased from 1.6 lakh for urban or semi-urban areas to 2 lakh rupees", the RBI said in its statement. This is after taking into consideration the important role played by microfinance institutions in delivering credit to those at the bottom of the economic pyramid and to enable them to play their assigned role in a growing economy.
 
Amid stressful financial situation in India, Finance Minister Nirmala Sitharaman on Thursday reviewed the state of economy at the meeting of the Financial Stability and Development Council (FSDC) in the national capital.
 
The meeting reviewed the current global and domestic economic situation and financial stability issues, including those concerning banking and NBFCs. It also took stock of various governmental measures to boost the sagging growth which hit a six-year low of 5 per cent in the first quarter of the current fiscal.