Question
Who issued guidelines for the microfinance institutions
in India?Solution
In India, the guidelines for microfinance institutions (MFIs) are issued by the Reserve Bank of India (RBI). The RBI regulates and oversees the operations of microfinance institutions to ensure their compliance with financial norms and to safeguard the interests of borrowers. These guidelines cover various aspects, such as interest rates, transparency, and lending practices, aimed at protecting low-income borrowers and ensuring responsible lending practices in the microfinance sector.
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