Current Affairs

RBI increased Household Income Limits for borrowers of NBFC-MFIs

Current context: Reserve Bank of India has increased the household income limits for borrowers of Non-Banking Financial Companies (NBFCs) and microfinance institutions (MFIs).
RBI increased Household Income Limits for borrowers of NBFC-MFIs 
  • The household income limits for borrowers of NBFCs and MFIs has been increased from Rs 1 lakh to Rs 1.25 lakh for rural areas.
  • Similarly, the limit has been increased from the current level of Rs 1.6 lakh for urban/semi urban areas to Rs 2 lakh.
  • The move is aimed at strengthening credit to those at the bottom of the economic pyramid and considering the important role played by MFIs in delivering credit.
  • Further, the limit on total indebtedness of the borrower has been increased from Rs 1 lakh to Rs 1.25 lakh.
  • The limits on disbursal of loans have been raised from Rs 60,000 for the first cycle and Rs 1 lakh for the subsequent cycles to Rs 75,000 and Rs 1.25 lakh respectively.

Question: 

Q.1 Reserve Bank of India has recently increased the household income limits for borrowers of Non-Banking Financial Companies (NBFCs) and microfinance institutions (MFIs) to Rs ________ for rural areas?
a. Rs 2 lakh
b. Rs 1.25 lakh
c. Rs 1 lakh
d. Rs 1.6 lakh
RBI increased Household Income Limits for borrowers of NBFC-MFIs RBI increased Household Income Limits for borrowers of NBFC-MFIs Reviewed by Neha Verma on November 09, 2019 Rating: 5

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