RBI move to harmonise MFI norms to improve sector competitiveness: Ind-Ra

Rating agency urges level-playing field for finance cos

The Reserve Bank of India, which is in the process of harmonising regulatory norms for microfinance lenders, needs to remove uneven playing field which gives disproportionate benefit to entities other than finance companies.

The provisioning norms, rules for margins and access to credit information bureaus need to be harmonized.  

RBI’s move to bring harmony across class of lenders in microfinance field in positive step. It would reduce the competitive intensity among the various forms of entities operating in this sector, India Ratings (Ind-Ra) in a statement.

There are four sets of lenders in micro finance space – finance companies, universal banks, small finance