RBI prescribed interest rate cap

The Reserve Bank of India (RBI) has said that the margin cap for all Non Banking Finance Companies (NBFCs) irrespective of their size would be 12 % per cent till March 31, 2014. However, with effect from 1st April, 2014 margin caps as defined by Malegam Committee may not exceed 10 per cent for large MFIs (loans portfolios exceeding Rs 100 crore) and 12 per cent for the others.