BANKING AFFAIRS

Detailed explanation-1: -1, 00, 000 in subsequent cycles; i. tenure of the loan not to be less than 24 months for loan amount in excess of Rs. 15, 000 with prepayment without penalty; ii. aggregate amount of loans, given for income generation, is not less than 50 per cent of the total loans given by the MFIs and iii.

Detailed explanation-2: -3.1 A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to ₹3, 00, 000.

Detailed explanation-3: -In a notification on Thursday, the Reserve Bank of India said that the minimum holding period requirement for non-banking finance company originating loans, will now be set at six monthly or two quarterly installments. Earlier the holding period was 12 months.

Detailed explanation-4: -The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand. NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time.

Detailed explanation-5: -The minimum requirement of microfinance loans for NBFC-MFIs also stands revised to 75 per cent of the total assets. 8.2 Under the earlier guidelines, an NBFC that does not qualify as an NBFC-MFI, cannot extend microfinance loans exceeding 10 per cent of its total assets.