ESAF Small Finance Bank on RBI removing pricing curbs

Mr. K Paul Thomas, MD and CEO of ESAF Small Finance Bank on RBI removing pricing curbs.

The guidelines ensure uniformity across regulated entities irrespective of their legal status. The fact that loans given to households with income up to 3 lakh are considered as MFI loan is a welcome step. Also, limiting the maximum repayment value to 50 percent of the monthly household income will ensure the financial safety of the customers. It will guard against over indebtedness. SROs can come up with a common framework for assessing household income. Mandatorily submitting household incomes to credit bureaus will improve data quality. Bringing 100 cr plus not-for-profit companies on par with other players will bridge the regulatory gaps. RBI has taken a holistic approach to regulate the sector irrespective of the legal status or mode of operations.

Source : Equity Bulls

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ESAFSmallFinanceBank RBI PricingCurbs Removal