The Hindu Business Line : Nabard calls for stringent regulation of MFIs
Only three days back, I had written a blog about disciplining MFIs by the regulators. The bill is pending with Parliament to streamline the MFIs. But, NABARD appears to be not in favour of fixing a cap on the interest rates of lending by these outfits. It was a decade back, NBFCs were to be regulated thanks to Vasudev Committee Recommendations and interest rates on deposits were rationalised and Asset Liability Management guidelines were made applicable to NBFCs.
Now, MFIs are almost in a similar state. There can not be mushrooming of MFIs and allowed to operate without proper guidelines and supervision. Already SKS Microfinance has entered the capital market for IPO.