Current Affairs · Banking Regulations
Which of the following describes the revised qualifying asset threshold for Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) according to the regulatory updates issued by the Reserve Bank of India?
- 1The threshold has been completely removed to allow MFIs to function as full-service NBFCs.
- 2The threshold has been increased to 90 percent for institutions with an asset size exceeding 500 crore.
- 3The threshold has been reduced from 75 percent to 60 percent of total assets (net of intangible assets).✓
- 4The threshold remains at 85 percent of total assets to ensure strict focus on micro-lending.
Correct answer
The threshold has been reduced from 75 percent to 60 percent of total assets (net of intangible assets).
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