Microfinance body issues advisory for member firms as moratorium ends

Microfinance Institutions Network (MFIN), an industry association for the microfinance industry, on Tuesday said it has issued an advisory to its members on engaging with borrowers after the RBI moratorium ended on August 31, 2020.

Reserve Bank of India (RBI), in March, had announced a moratorium on repayment of term loans in order to provide relief to borrowers impacted by the Covid-19 related disruptions. Initially, the moratorium was allowed till May 31 but was later extended till August 31.

MFIN said the detailed advisory is a reiteration of points covered in Industry Code of Conduct and Code of Responsible Lending such as