A recent press report said that the RBI has announced that the Supervision of all Microfinance institutions will be under its control and that there is no plan of outsourcing the Regulatory framework regarding the MFIs Function.
Dr. K.C. Chakrabarty, Deputy Governor, in a seminar said that the RBI’s main Goal is to make the Microfinance institutions function effectively in India and that there was no plan of outsourcing. He said that the RBI wants MFIs under their direct control but that does not mean that the MFIs should be decentralized under RBI control.
He also said that the RBI has a plan to open new branches in the Remote areas to monitor the Microfinance institutions operations and avail the services to all kind of peoples. He said that the bill passed on the MFIs will facilitate in setting up the Rules and Regulations for them and will also help in the Development of MFIs evenly in all areas.
The RBI has recently hiked base rates by 25 basic points, in order to control inflation. The hike in base rate has affected the home loan and other loan borrowers as the hike in base rates by the RBI has pushed banks to hike their lending rates.