Matrimonial |  Properties |  Jobs |  Classifieds |  Ask Doctor |  Live TV |  Cartoon |  Sponsored Greetings |  Astrology  |   Red Chillies |  Tips for life |  Tribute |  Debate







      Search in

Saturday, February 16, 2013 4:21:38 PM (IST)  

'Loans to MFIs not to be priority-sector if margin cap goes'

Kolkata, Feb 16 (IANS): Virtually turning down the demand by micro-finance institutions (MFIs) for removing the stipulated cap on their margins, the RBI Saturday said if it does away with the cap then bank loans to the sector may not be treated as priority-sector lending.

"If I remove this (margin) cap it will not be treated as priority-sector lending. That much only I know. If they (MFIs) are happy with it, we may examine that," said Reserve Bank of Indian (RBI) Deputy Governor K.C. Chakrabarty here.

He was talking to the reporters on the sidelines of a conference on micro-finance, organised by the Indian Chamber of Commerce.

While the RBI had last year imposed a 10 percent margin cap for large MFIs and 12 percent for others, the micro-finance industry has been seeking a removal of that cap.

The bank had stipulated the 10 percent margin for micro-finance institutions with a portfolio over Rs.100 crore and 12 percent cap for institutions with lower than Rs.100 crore portfolio.

Currently, the central bank treats all bank loans to micro-finance companies as priority-sector lending.

The deputy governor also turned down the sector's demand for removing the 26 percent cap on lending rate.

Chakrabarty urged the MFIs not to expand operations without understanding their 'limitations'.

"Do not scale up without understanding limitations. Develop yourselves only for local markets. And do not lend money for consumption purposes," he added.



Stay updated wherever you go with Daijiworld.com and Daijiworld 24X7 tv channel mobile apps.
CLICK HERE to download it for your device.
(available on Android and IOS)
 
Print this Article
Email this article to your friend
 
 
Write your Comments
 
News Title 'Loans to MFIs not to be priority-sector if margin cap goes'
Your Name
Native Place / Place of Residence
Your E-mail
Your Comment
[Please limit your comments within 2000 characters]

You have characters left.
Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.
 
Security Validation
Enter the characters in the image above
 
 
Published by Daijiworld Media Pvt Ltd Mangalore
Editor-in-chief : Walter Nandalike


Corporate Office :
Daijiworld Residency,
Airport Road, Bondel Post,
Mangalore - 575 008
Karnataka India
Telephone : +91-824-2982023
City Office :
First Floor,
Divya Deepa Arcade,
Bendorewell, Kankanady,
Mangalore - 575 002
Karnataka India
Telephone : +91-824-4259372
e-mail   General enquiry: office@daijiworld.com, News & Info : news@daijiworld.com

Disclaimer | Privacy Policy | About Us
Copyright 2001 - 2014. All rights reserved.
Our Franchise Offices
Kishoo Enterprises, Maithri Complex, 3rd Floor,
Udupi Service Bus Stand, Udupi, Karnataka. Pin 576101
Telephone : 0091-820-4295571
e-mail : udupi@daijiworld.com
Daijiworld Middle East FZE
P.O.Box: 84772, Dubai, UAE
Tel: 971-50-6597629  Fax: 971-4-2639207
Email: dubai@daijiworld.com