Coronavirus Outbreak: Centre allows NBFCs, including HFCs and NBFC-MFIs to operate with minimum staff during lockdown
The government has allowed non-banking financial institutions (NBFCs), housing finance companies, and microfinance institutions to operate with bare minimum staff during the nationwide COVID-19 lockdown.
The MUDRA scheme, launched under PMMY in 2015, provides low-interest loans to micro-finance institutions (MFIs) and non-banking financial institutions
Ghosh doesn’t believe that the entry of new set of banks will be the end of life for MFIs. Microlenders will survive partnering with the new set of banks
Once micro-finance institutions become banks, they can tap public savings and lower their dependence on bank finance
A strong implication of this finding is the need to introduce greater transparency regarding interest charges of different loan sources, especially the MFIs, the study said.