BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

In respect of which one of the following areas, Y. H. Malegam Committee has submitted its recommendations?

A	Interest on Micro Finance loans
B	Teaser loans
C	Rural development
D	Advances to agriculture

Explanation:

Detailed explanation-1: -The Committee had recommended that net owned funds should be in form of Tier I capital, and has set the minimum capital for NBFC-MFIs at Rs 15 Crore. These recommendations essentially restrict MFI promoters to corporates, or individuals backed by investors with significant capital.

Detailed explanation-2: -Regulatory approach towards microfinance has been largely based on the recommendations of the Malegam Committee.

Detailed explanation-3: -Y. H. Malegam Committee is an expert committee constituted by the Reserve Bank of India in February 2018 to look into: Rising incidents of fraud. The effectiveness of audits. And classification of bad loans.

Detailed explanation-4: -Malegam was appointed Chairman of the famous Malegam Committee (Sub-Committee of the RBI Central Board of Directors) set up to study issues and concerns in the MFI Sector. The committee submitted its report to the RBI in January 2011. Malegam contended that the micro-finance institutions have neglected the poor.

There is 1 question to complete.