Interest rates on small amount loans in MFIs and NBFCs are high. RBI said- These high interest rates seem like usury.Such institutions should use regulatory independence wisely.
Mumbai. Reserve Bank of India (RBI) Governor Shaktikanta Das expressed serious concern over one issue in the MPC meeting on June 7. He said that some microfinance institutions and non-banking financial companies (NBFCs) are charging high interest rates on small-amount loans. Governor Shaktikanta Das said, “It has been observed that some MFIs and NBFCs have high interest rates on small-amount loans and usury is involved.”
While announcing the monetary policy, the RBI Governor emphasized that such entities should use regulatory freedom judiciously to ensure fair and transparent pricing of products and services.
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There was no change in the repo rate
The governor said in the second bi-monthly monetary policy for the current financial year, the central bank’s panel has decided to keep the repo rate unchanged at 6.5 percent with a majority of 4:2. This means that the RBI did not make any change in the interest rates. After this, the hope of reduction in home loan EMI and the hope of higher interest on FD, both ended.
Governor Shaktikanta Das said, “The global crisis continues, but India is witnessing positive growth, yet we need to be alert to new challenges.” The RBI sees bright prospects for continued high growth. He said it will remain future-ready to enhance India’s global standing.
Tags: Bank Loan, Business news, RBI Governor, RBI Policy
FIRST PUBLISHED : June 7, 2024, 11:50 IST