In the past two months, RBI has informally directed Sidbi to not invest in any non-banking finance companies without its approval… Sidbi has also been told by the finance ministry to ensure that Indias MFIs do not levy onerous interest rates. Further,it has been told to commission a study on interest rates and to start a forum where banks can compare notes about MFIs.
Within RBI, Nabard and the finance ministry, the feeling that Sidbi could have done more to keep errant NBFC-MFIs in line grows.
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