DRAFT MICROFINANCE BILL GIVES RBI TOTAL CONTROL
Reserve Bank of India (RBI) will regulate the Micro Finance sector:
- Every entity , except bank, engaged in Micro Finance to register with RBI.
- RBI may specify margin requirements and other norms for MFIs.
- State advisory councils proposed to give states a say in policy making.
- Systematically important MFIs to register as companies under Companies Act 1956.
- MFIs will need to create a reserve fund out of its net profit.
- All M&As in the MFI sector will have to be approved by the RBI.