Question
Microfinance institutions ha ve seen a deterioration in
NPA levels recently. Who regulates microfinance institutions in India?Solution
In India, the Reserve Bank of India (RBI) is the primary regulatory authority responsible for overseeing microfinance institutions and Non-Banking Financial Companies (NBFCs). The RBI issues guidelines, supervises their operations, and ensures that these entities comply with the regulatory framework to maintain financial stability and protect the interests of borrowers and depositors. Â
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