Customer protection lies at core of microfinance regulation, says RBI Deputy Governor

Customer protection lies at the core of microfinance regulation, and it has been the Reserve Bank of India's guiding light while revamping the regulatory regime for the sector, said the central bank's Deputy Governor M. Rajeshwar Rao.

Rao made the remarks while delivering the keynote address at the launch of MFIN's India Microfinance Review in Mumbai on Friday. "We have attempted to move from a rule-based approach to a principle-based approach thus creating enabling environment for more financial institutions to serve the excluded, while protecting their interests through competition and transparency," Rao said in his address.

In his concluding remarks, Rao said he was hopeful that the regulatory reforms will provide the requisite impetus for the long but immensely fulfilling journey toward an inclusive and responsible microfinance sector.

MFIN has been instrumental in multiple initiatives to strengthen the sector during the decade and to develop the microfinance ecosystem. Microfinance Institutions Network is an association for the microfinance sector in India. Its member organizations constitute the leading microfinance institutions in the country.