Mumbai (The Economic Times): The chief minister of Andhra Pradesh, which has cracked down on the operations of microfinance firms, pledged cooperation with the central bank if it adopts "strict" rules governing non-bank financial firms. Follow up:
The RBI subcommitee is expected to submit its recommendations by mid-January.
India's finance minister, central bank officials and senior state bankers have spoken up in support of the micro-finance industry, which makes loans averaging $140, mostly to women. Read more......
Follow up:The Reserve Bank of India formed a panel in late October in response to an ordinance enacted by Andhra Pradesh that has severely curtailed the activities of microfinance firms in the state, which is the hub of the industry in India.