Currently, NBFC-MFIs are not permitted to do e-KYC for their customers. Only those MFIs which are operating as banking correspondents of commercial banks can do e-KYC for that category of customers.
According to the recent guidelines from the RBI, banks cannot open multiple current accounts for customers who have availed cash credit or overdraft facility from other banks. All transactions need to be routed through cash credit or overdraft accounts.
The former RBI governor Raghuram Rajan weighs in on a raft of issues, including the loan moratorium, stressed assets, the coronavirus lockdown and more, in an exhaustive interview.
A special dispensation for the small and medium-sized MFIs is needed
Till now banks and NBFCs are offering the moratorium only to individual customers
The nationwide lockdown to fight COVID-19 presents a major crisis for banks with high exposure to the microcredit segment. With many small businesses on the verge of shutting down, loan repayments may stop.
"A large section of our population is self-employed. We expect a bounce back since this self-employed low-income segment is perennially credit-starved," said Harsh Shrivastava, CEO, Microfinance Institutions Network.
Bandhan Bank a hyper-aggressive player in microfinance space
This group of lenders have learnt how to make most of the opportunity at the bottom of the pyramid
"Microfinance is growing at 48 per cent CAGR in the last five years, there is still room for growth given that microfinance penetration is 25 per cent of the addressable market," KPMG India national head (Financial Services) Gayathri Parthasarathy said in the report.
This securitisation held last month, is the eighth tranche for the current financial year and the total pool securitised with different bank amounts to Rs 611 crore, a press release said.
According to a BCG report, digital lending in India will become a $1 trillion opportunity in the next five years
Though we don’t foresee any big challenge to the bank’s regular pace of growth, the regulatory requirement of paring down promoter holding can remain an overhang on the stock
CreditAccess Grameen operates right at the heart of rural India providing finance to the unserved masses at the bottom of the socio-economic pyramid making it a unique rural financial services play
At present, MFIs can lend 15 percent of their total assets outside the guidelines governing MFI lending. Such loans do not qualify as priority sector lending (PSL).
Bandhan Bank’s scale, experience and history in micro loans, combined with superior return ratios from the general banking business, strong asset quality and more than adequate capital should support premium valuations
IVL Finance is a wholly-owned non-banking finance company of Indiabulls Ventures. It was earlier known as Shivshakti Financial Services.
The Bank’s board members will meet on Saturday, October 14, and most likely announce the merger deal with Bharat Financial
Customers would be happy to know that banks are sprucing up their festive offers to give discounts on loans and waive off charges to avail loans in the Diwali season.
The current round of funding is a crucial step in enabling the micro-lender to complete its transition into a small finance bank.
In an interview with CNBC-TV18, R Sreesankar, Head-Institutional Equities at Prabhudas Lilladher shared his readings and outlook on market fundamentals.
The brokerage house believes that the NBFC is taking the right steps and there will be short-term pain due to them, but in the long run it will be a positive for it.
Rashesh Shah of Edelweiss Financial Services believes the market seems to be settling at a fairly strong base. He now sees strong credit growth coming from outside of the banking arena.
Shrugging off the effects of demonetisation, collections in securitised pools of vehicle loan receivables rated by Crisil saw a sharp recovery in January, going by payouts made in February.