RBI changed the entire loan system. Ban imposed on 4 companies. Now small loan of more than Rs 2 lakh will not be available.

Network of Microfinance Institutions (MFIs) MFIN Has announced to implement new and strict rules for giving loans to the weaker sections of the society. These changes have been made after repeated concerns raised by the Reserve Bank of India (RBI). Purpose of these rules responsible lending To promote and ensure the safety of customers. Let us understand these new changes in detail.

What are the new changes?

1. Credit limit for one customer

• Now a borrower can avail a maximum Three MFIs (Microfinance Institutions) Will be allowed to take loan only from. Earlier this limit was four.
• The total credit liability of any customer (including MFIs and other unsecured loans) two lakh rupees Has been limited to.

2. Strictness on non-performing assets (NPA).

• customers who 60 days for longer than Rs 3,000 or more, they will not be given further loan.
• before this deadline 90 days Was.

3. Restrictions on Fees No extra money will be charged

• MFIs can no longer charge any other fee except loan processing fee and life insurance fee.

21 October 2024 On 25 June, RBI sanctioned four financial institutions (Navi Finserv, DMI Finance, Aarohan Financial Services and Ashirwad Micro Finance) were barred from giving new loans due to improper activities.