Reserve Bank is also planning to revamp its cash management system.
RBI has announced that it will invite payment banks application to establish small and payment banks by the end of this month. The banks will address the small businesses and marginalised segment, as reported by PTI.
“Reserve Bank is also planning to revamp its cash management system. Microfinance borrowers should now be protected from arbitrary loan pricing,” Governor Raghuram Rajan told PTI, while addressing micro-financiers at a Nabard function.
The PTI report further stated that following the October 2010 crisis in the then undivided Andhra Pradesh that crippled the MFI sector, an RBI-appointed Malegam panel had suggested 26 per cent monthly cap on interest rates for the sector. This cap was notified by the central bank in April 2012.
Farmers who have been victim of cyclone Phailin last year will now avail a loan waiver which was initiated by Andhra Pradesh and Telangana governments.
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