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'RBI not in favour of allowing MFIs to take deposits'

Reserve Bank of India (RBI) Deputy Governor Anand Sinha on Monday indicated the central bank was not in favour of allowing micro-finance institutions (MFIs) to take deposits from public. “After all, whatever legislation passes, we have to work with that. But, RBI’s position has been that deposit-taking should be limited to banks,” he told reporters in reply to a question on whether MFIs should be allowed to take small deposits. The draft Micro Finance Institutions (Development and Regulation) Act, 2011 circulated for public comments by the finance ministry has a provision ...