Question
For an NBFC-MFI (Microfinance Institution), what is the
minimum proportion of its assets that must be in the form of microfinance loans?Solution
• As per the revised RBI regulatory framework for NBFC-MFIs (2021–22): o At least 75% of the total assets of an NBFC-MFI must be in the form of microfinance loans. o This replaced the earlier rule, which required 85% of net assets (total assets excluding cash, bank balances, and money market instruments) to be qualifying microfinance assets.
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