Question
RBI’s Regulatory Framework for Microfinance Loans
Directions, 2022, will take effect on ?Solution
· RBI has instructed regulated entities lending to the microfinance sector to ensure that loans are collateral-free and not secured by a lien on the borrower’s deposit account, that repayment obligations are capped, that interest rates are not usurious, and that there is no prepayment penalty.
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