Sunday, August 23
Mumbai: The Reserve Bank of India on Monday asked microfinance institutions to monitor the stress build-up on their books going forward.In the trend and progress in banking report for FY25, which comes amid a raft of measures impacting the industry in Karnataka and Tamil Nadu, the RBI also said disbursements were lower in southern states in the fiscal year.Noting that a slew of measures have been taken by the industry to improve its performance, the report said, "Going ahead, regulated entities need to monitor the build-up of stress in the segment.Over the last few quarters, lenders have faced challenges on the MFI front, stemming from over-leverage among borrowers, which led to the industry coming together and adopting a set of guardrails, including limiting the number of loans that can b
