Which institution released the Directions of ‘Regulatory Framework for Microfinance Loans’? [A] NABARD[B] RBI[C] Ministry of Finance[D] Ministry of Cooperation
Option B) RBI .The Reserve Bank of India has released the RBI (Regulatory Framework for Microfinance Loans) Directions, 2022, which will be effective from April 1, 2022. Under the directions, RBI asked regulated entities (REs) lending to the microfinance segment to ensure that loans are collateral-free and not linked with a lien on the borrower’s deposit account. REs will also ensure repayment obligations are capped, interest rates are not usurious, and there is no pre-payment penalty.
