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FINANCE TO MFIs AND CO LENDING ARRANGEMENTS WITH NBFCs

What is a Microfinance Institution (MFI) in the context of Indian banking regulation?
An MFI is a non-deposit taking NBFC that provides small loans primarily to low-income borrowers for income-generating activities, regulated by RBI under the NBFC-MFI category.
What is the minimum Net Owned Fund (NOF) required for an NBFC to register as NBFC-MFI?
Rs. 5 crore (Rs. 2 crore for North-East states)
What is the minimum Net Owned Fund (NOF) required for an NBFC to qualify as an NBFC-MFI?
An NBFC must have a minimum Net Owned Fund of Rs. 5 crore (Rs. 2 crore for North-East region) to be registered as an NBFC-MFI with RBI.
What is the maximum permissible loan amount in the second cycle under the NBFC-MFI framework?
Rs. 60,000 in the second loan cycle
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