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With reference to the Consultative Document on Regulation of Microfinance by Reserve Bank of India, consider the following statements:
1. Alignment of pricing guidelines for NBFC-MFIs with guidelines for NBFCs.
2. A Board approved policy for household income assessment.
3. Capping the outflow on account of repayment of loan obligations of a household to a percentage of the household income.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 and 3 only
  • c)
    1 and 3 only
  • d)
    1, 2 and 3
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
With reference to the Consultative Document on Regulation of Microfina...
Reserve Bank of India has released a Consultative Document on Regulation of Microfinance. It has been released for harmonising the regulatory frameworks for various regulated lenders in the microfinance space.
The key proposals of the Consultative Document are enumerated below:
  • A common definition of microfinance loans for all regulated entities.
  • Capping the outflow on account of repayment of loan obligations of a household to a percentage of the household income.
  • A Board approved policy for household income assessment.
  • No pre-payment penalty; no requirement of collateral; and greater flexibility of repayment frequency for all microfinance loans.
  • Alignment of pricing guidelines for NBFC-MFIs with guidelines for NBFCs.
  • Introduction of a standard simplified fact sheet on pricing of microfinance loans for better transparency.
  • Display of minimum, maximum and average interest rates charged on microfinance loans on the websites of regulated entities.
Background
  • Taking into consideration the constantly evolving milieu in the financial sector, it is proposed to review the regulatory framework for Non-Banking Financial Company - Micro Finance Institutions (NBFC-MFIs).
  • There is a case for having a framework which is uniformly applicable to all regulated lenders in the microfinance space including scheduled commercial banks, small finance banks and NBFC-Investment and Credit Companies, rather than prescribing these guidelines for NBFC-MFIs alone.
  • Hence both statements are correct.
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With reference to the Consultative Document on Regulation of Microfinance by Reserve Bank of India, consider the following statements:1. Alignment of pricing guidelines for NBFC-MFIs with guidelines for NBFCs.2. A Board approved policy for household income assessment.3. Capping the outflow on account of repayment of loan obligations of a household to a percentage of the household income.Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?
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With reference to the Consultative Document on Regulation of Microfinance by Reserve Bank of India, consider the following statements:1. Alignment of pricing guidelines for NBFC-MFIs with guidelines for NBFCs.2. A Board approved policy for household income assessment.3. Capping the outflow on account of repayment of loan obligations of a household to a percentage of the household income.Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to the Consultative Document on Regulation of Microfinance by Reserve Bank of India, consider the following statements:1. Alignment of pricing guidelines for NBFC-MFIs with guidelines for NBFCs.2. A Board approved policy for household income assessment.3. Capping the outflow on account of repayment of loan obligations of a household to a percentage of the household income.Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Consultative Document on Regulation of Microfinance by Reserve Bank of India, consider the following statements:1. Alignment of pricing guidelines for NBFC-MFIs with guidelines for NBFCs.2. A Board approved policy for household income assessment.3. Capping the outflow on account of repayment of loan obligations of a household to a percentage of the household income.Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?.
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