 "RBI classifies SKS as NBFC-MFI")
SKS Microfinance Limited, the only listed microfinance institution (MFI) in the country, has stated the Reserve Bank of India (RBI) had classified the company as a Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) (Non-Deposit taking) from its existing status of NBFC (Non-Deposit taking).
The RBI reclassified the company based on its application on January 31, 2013, and subsequent correspondences to this effect, the MFI informed the BSE on Thursday.
SKS chief financial officer, Dilli Raj, told Business Standard this would make the MFI eligible for priority sector lending. Consequently, there would not only be an improvement in funding availability from banks but also interest rates would be comparatively a bit lower.
The RBI reclassified the company based on its application on January 31, 2013, and subsequent correspondences to this effect, the MFI informed the BSE on Thursday.
SKS chief financial officer, Dilli Raj, told Business Standard this would make the MFI eligible for priority sector lending. Consequently, there would not only be an improvement in funding availability from banks but also interest rates would be comparatively a bit lower.