What is malegam Committee?
Malegam Committee is an expert committee constituted by the Reserve Bank of India in February 2018 to look into rising incidents of frauds, the effectiveness of audits, and classification of bad loans. Y.H. Malegam would be heading the committee who is the former member of Central Board of Directors of RBI.
What is the status of microfinance in India?
“Microfinance”, is also emerging as a fast growing sector, although this segment is still underpenetrated. Various studies indicate that the microfinance sector in India has the potential to grow at a CAGR of 40% by 2025.
Why is there a malegam Committee?
The Board of Directors of the Reserve Bank of India, formed a Sub-Committee of the Board to study matters and concerns in the microfinance sector in so far as they are related to the entities regulated by the Bank. The Sub-Committee was under the chairmanship of Y.H. Malegam.
What are the RBI guidelines for MFI?
The minimum requirement of microfinance loans for NBFC-MFIs also stands revised to 75 per cent of the total assets. 8.2 Under the earlier guidelines, an NBFC that does not qualify as an NBFC-MFI, cannot extend microfinance loans exceeding 10 per cent of its total assets.
What is PJ Nayak Committee?
The P J Nayak Committee or officially the Committee to Review Governance of Boards of Banks in India was set up by the Reserve Bank of India (RBI) to review the governance of the board of banks in India. The Committee was set up in January 2014.
What is Tarapore Committee report?
The Committee on Capital Account Convertibility (CAC) or Tarapore Committee was constituted by the Reserve Bank of India for suggesting a roadmap on full convertibility of Rupee on Capital Account. The committee submitted its report in May 1997.
Which is the largest MFI in India?
Equitas is one of the leading Small Finance Institutions in India having a network of more than 400 branches spread across 22 states and 2 union territories. Having pioneered the concept of small finance in the country, Equitas is India’s largest organized microcredit institution by branch network and customer base.
What are the two main streams of microfinance in India?
MFIs in India are of two kinds: those regulated by the Reserve Bank of India, or RBI, and called nonbanking finance companies, or NBFC MFIs, and those run by non-profit trusts and societies.
Which committees are related to micro financing?
Regulatory approach towards microfinance has been largely based on the recommendations of the Malegam Committee.
Who regulates MFI India?
The Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) shall regulate the micro finance sector; it may set an upper limit on the lending rate and margins of Micro Finance Institutions (MFIs).
How much is the loan limit in a microfinance?
Loan limit; amortization; interest.
The maximum principal amount of microfinance loans shall not exceed P150,000. This is equivalent to the maximum capitalization of a microenterprise under R.A. No. 8425.
What is Naresh Chandra committee?
The Naresh Chandra committee is the third major corporate governance initiative launched in India since the mid-1990s, after the first voluntary code of corporate governance by the Confederation of Indian Industry (CII) in 1998, followed by Clause 49 of the Listing Agreement by SEBI in 2000.
What is Nayak committee turnover method?
Simplified Turnover Method is used to assess the working capital requirement of any borrower based on the turnover of the business. This method was originally suggested by the P.J. Nayak Committee for the Small Scale Industries in India in need of working capital from banks.
What is YV Reddy Committee?
Y.V. Reddy), set up to examine the analytical aspects of the monetary survey, submitted its report in June 1998. The Working Group recommended the compilation of comprehensive analytical surveys of the Reserve Bank of India, commercial and co-operative banks and the organised financial sector at regular intervals.
What is the Bimal Jalan Committee?
The Reserve Bank of India (RBI) committee led by Bimal Jalan (former RBI governor) constituted for considering guidelines for transfer of central bank’s surplus funds to government delayed submitting its report after lack of consensus among its members.
Which is the 1st MFI in India?
In 1974, SEWA (Self-Employed Women’s Association) Bank, a cooperative bank, was established in Ahmedabad; as one of the first modern-day microfinance institutions in the country.
Is the MFI licensed or regulated by RBI?
About NBFC MFI
These “Last Mile Financiers” are known as NBFC MFI or Non-Banking Financial Company-Microfinance Institutions. The objective of covering them under RBI was to make these NBFC MFIs healthy and accountable. They have to get NBFC License with RBI and fulfill the conditions as laid down for them.
What is the difference between NBFC and MFI?
Although, Non-Banking Financial company cannot issue checks drawn on itself. On the other hand, MFI stands for Microfinance institutions which are established to operate at a smaller level than NBFC and provide small loans facilities to the underprivileged sections of the society.
What is the rule of microfinance?
The law defines “microfinance” as the “viable and sustainable provision of a broad range of financial services to poor and low-income individuals engaged in livelihood and microenterprise activities.” RA 10693 was signed into law by then-President Benigno Aquino III on November 3, 2015.
What are microfinance risks?
1.1. 3 Microfinance institutions consciously take risk as they perform their role of financial intermediation in the economy. Consequently, they are exposed to a spectrum of risks, which include credit risk, interest rate risk, liquidity risk, and operational risk.
What is PJ Nayak committee?
What is Narayan Murthy committee?
The committee on corporate governance set up by SEBI under the chairmanship of N.R. Narayana Murthy which submitted its report in February 2003 was yet another committee on the subject signifying the regulator’s anxiety to expeditiously promote corporate governance practices in Indian companies.
What is Nayak committee method?
Turnover method (Nayak Committee norms) Under turnover method, the aggregate fund-based working capital limits are computed on the basis of Minimum of 20% of their projected annual turnover. The borrower has to bring the margin of 5% of the annual turnover of such borrowers as margin money.
What is Tandon committee method?
The Tandon Committee was formed with the objective of framing guidelines for commercial banks for ensuring proper end-use of funds, for supervision and follow-up of bank credit. You can read about the RBI – Reserve Bank of India [UPSC Indian Economy Notes] in the given link.
What is M0 M1 M2 M3 M4?
M0 = Currency notes + coins + bank reserves. M1 = M0 + demand deposits. M2 = M1 + marketable securities + other less liquid bank deposits. M3 = M2 + money market funds. M4 = M3 + least liquid assets.