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RBI Takes Control of Microfinance Sector

RBI probably has taken a cue from SKS microfinance institute (MFIs) fiasco and that is the reason it has announced that microfinance institutions will come under its jurisdiction.

The rate of interest rates, fees and premiums to be charged by MFIs will be given by RBI  and minimum net worth for each MFI has been established at Rs 5 lakh. Another remarkable announcement is setting up of Microfinance Development Council which will give a boost to this sector in an organised manner.

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