Stable margins, lower credit cost, and operating leverage to support return on assets.
The Bill envisages the RBI as the sole regulator for all micro finance institutions (MFIs) including even those that are not companies.
The Andhra Pradesh Micro finance Ordinance in October, 2010, which was made it into an Act subsequently, had crippled the activities of MFIs, including SKS, in the state.
Reserve Bank Deputy Governor K C Chakrabarty has said banks cannot do financial inclusion as "charity" but only as a viable business model and for long- term survival achieving this is a must. "Banks must not do financial inclusion as charity.
During the last few years, banks have been looking for greater benchmark scores to extend loans to consumers, a Cibil official said today.
The Finance Ministry had put out the proposed MFI (development & regulation) bill in 2011 for public debate, which proposes to override all other laws, including legislations passed by states like Andhra Pradesh.
SKS Microfinance today challenged in the Supreme Court the special act passed by the Andhra Pradesh government to regulate micro finance institutions in the state after allegations that their high interest rates and strong-arm recovery methods led to suicides by farmers.