A top RBI official said to curb the influence of money-lenders over poor borrowers the Reserve Bank of India is considering of giving more assistance to Self Help Groups (SHGs) and Microfinance Institutions (MFIs).
In Mumbai speaking in a seminar RBI’s Deputy Governor, Usha Thorat, said, "There is a need to propel the growth of SHGs and MFIs in order to bring down the influence of money-lenders over poor borrowers...RBI is taking regulatory and strategic initiatives to achieve this goal".
Thorat said the apex bank is considering formulating guidelines to allow banks to open savings bank accounts for SHGs and for the de-regulation of interest rates for SHGs, MFIs, Non-Banking Financial Companies, Regional Rural Banks and Urban Co-operative Banks.
In order to facilitate remittances from urban centers and encourage them for opening accounts, it is being assumed soon RBI will be coming up with guidelines to simplify KYC norms for small value accounts which will help urban-migrants to avail banking services.
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