Current context: Reserve Bank of India has increased the household income limits for borrowers of Non-Banking Financial Companies (NBFCs) and microfinance institutions (MFIs).
a. Rs 2 lakh
b. Rs 1.25 lakh
c. Rs 1 lakh
d. Rs 1.6 lakh
- 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
