The Reserve Bank of India (RBI) Governor D Subbarao today said the loan disbursement mechanism should always be "transparent".
"There needs to be more transparency and accountability in loan disbursement and we are continuously working on it," he told reporters while refusing to give specific comments on CBI crackdown on housing finance racket.
Subbarao, who was interacting with reporters on the sidelines of a function here, said a large section of the people had access to loans and the disbursement was not confined to only a few privileged.
To a poser, he said a sub-committee of RBI was going into all issues concerning MFIs and the report was expected by the end of January next.
He, however, added, "Micro Finance Institutions have served a valuable purpose."
Earlier, the RBI governor inaugurated "Financial Inclusion and Financial Literacy Learning Centre" at College of agricultural banking here, which aims at effective dissemination of information and improving understanding of the people to aid policy formulation.