Be Judicious In Using Flexibility On Interest Rates:Governor To NBFC-MFIs
NDTV
Shaktikanta Das said the microlending segment serves marginalised clientele and has emerged as an important financial conduit to foster financial inclusion.
Stating that some Non Banking Finance Company-Microfinance Institutions (NBFC-MFIs) are making wider net interest margins, RBI Governor Shaktikanta Das on Wednesday asked entities to be "judicious" in using the flexibility on the interest rates they charge from borrowers.
Speaking at the annual Fibac event, Mr Das said the microlending segment serves marginalised clientele and has emerged as an important financial conduit to foster financial inclusion.
"Though the interest rates are deregulated, certain NBFC-MFIs appear to be enjoying relatively higher net interest margins. It is indeed for microfinance lenders themselves to ensure that the flexibility provided to them in setting interest rates is used judiciously," he said.
