Microfinance SRO makes pitch for 4% cap on RoA after RBI action on 4 NBFCs

Quick Summary:

With regards to total number of loan accounts, NBFC-MFIs are ahead with 40.04 per cent market share, followed by banks at 33.33 per cent.

Onsite supervision revealed that many lenders were maintaining a spread of 12 per cent, with weighted average lending rates in the 26-28 per cent range.

In addition to overcharging borrowers, the NBFCs that faced RBI action were found violating several norms, including improper assessment of household income and failure to consider borrowers' existing or proposed repayment obligations.

---

More Pictures

---

Read Quick SummarySave Time

or

Article Details

Category: BusinessFinance

Markets: India

Topics: Micro finance Microfinance institutions RBI

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-10-22 @ 21:07:25 (1 weeks ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 505 words

Reading Time: 3 minutes read

Sentences: 20 lines

Sentence Length: 26 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Business Standard

News ID: 23203694

View Article Analysis

About Business Standard

Main Topics: BusinessFinance

Official Website: business-standard.com

Update Frequency: 220 posts per day

Year Established: 1975

Headquarters: India

News Last Updated: 2 hours ago

Coverage Areas: India

Ownership: Independent Company

Publication Timezone: GMT +5:00

Content Availability: Worldwide

News Language: English

RSS Feed: Available (XML)

API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #49

Publisher Details

Frequently Asked Questions