New chapter in microfinance: End of overleveraging?

The RBI finally had to step in since self-regulatory organisations have failed to address a few banks' enthusiasm for overleveraging hapless small borrowers

March 14, 2022, is a red letter day for the Indian microfinance industry. The new regulations for microfinance are a real shot in the arm for financial inclusion in the world’s sixth largest economy that’s fighting hard for poverty alleviation.

The new norms, to come into play from April, will create a level playing field for banks and other financial intermediaries on the microfinance turf; intensify competition by freeing interest rates; and help expand the coverage to include millions more who don’t have access to formal financial channels as yet.
 

Before we peer through a periscope to get a feel for