'Microfinance entities face crackdown'
MFIs are proliferating. The recent developments in India only indicate that while on one side there is focus on Financial Inclusion and the banking system has been endeavouring to bridge the gap, on the other side, these MFIs are spreading fast and wide. It is appreciable that we need to have a level playing field in the industry, but not at the cost of charging usurious interest rates ranging any where between 24 to 36 per cent on the loans to rural poor and women. It is time that GOI and RBI speed up the enactment of the proposed law to regulate the MFIs.