Tuesday, February 15, 2011

BANKS GET WAIVER FOR MFI LOAN RECAST

The Reserve Bank of India granted a one-time waiver to banks for restructuring loans given to
micro finance institutions (MFI). Accordingly, these unsecured loans - restructured before March 2011 - will be treated as standard assets. The central bank has also asked banks to continue to lend to the MFI sector to ensure continuity of operations.

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