New Delhi: The Reserve Bank has recognised Micro Finance Institutions Network (MFIN), the industry association for the micro-finance industry, as a self regulatory organisation for NBFC-MFIs.
"MFIN,...Has been formally recognised by the Reserve Bank of India (RBI) as the SRO (self regulatory organisation) for NBFC-MFIs. This makes MFIN the first RBI recognised SRO in the country," the industry association said in a release today.
Status of MFIN as the SRO is likely to promote responsible lending and client protection.
Last year in November, RBI had announced it would accord recognition to industry associations as self regulatory organisations of non-banking financial companies that are engaged in micro finance (NBFC-MFIs or Non-Banking Financial Companies-Micro Finance Institutions) and had invited applications for recognition as SROs.
The decision was taken by RBI based on the recommendations made by a sub-committee under the chairmanship of Y H Malegam which was formed to study the issues and concerns in the micro-finance sector.