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A New Challenge For India’s Microfinance Industry?

A New Challenge For India’s Microfinance Industry?

In October 2010, the enactment of a law in the southern state of Andhra Pradesh, then a hotbed of the microfinance industry, almost killed it. The law came into force in the wake of a spate of suicides by microfinance borrowers, allegedly harassed by the coercive measures adopted by the collectors of such loans. The Reserve Bank of India (RBI) stepped in with regulations capping the interest rates, quantum of loans and the number of borrowers a microfinance company can entertain, and formation of credit bureaus, among other things.

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DY GOV VIRAL ACHARYA QUITS RBI

DY GOV VIRAL ACHARYA QUITS RBI

Viral Acharya, Reserve Bank of India's youngest deputy governor post economic liberalisation, has resigned six months before the scheduled end of his term. Acharya who joined the RBI on January 23, 2017 for a three-year term, is returning to New York University Stern School of Business (NYU Stern) in August instead of February 2020 as the CV Starr professor of economics. People familiar with the development said he had put in his papers a few weeks before the last meeting of the RBI’s rate-setting panel Monetary Policy Committee (MPC) early this month.

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The Three Rs Of Public Sector Banking

The Three Rs Of Public Sector Banking

In a recent conversation, Rajkiran Rai, managing director of Union Bank, has made an interesting remark. “When we started our career in 1980s, we were not in the business of banking. Since we were government owned (even now, they are), people walked into our branches and kept their money; we did not have to ask for it.