MICRO FINANCE AND TYPES OF ATM'S
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for VIDEO LECTURES OF ASHISH SIR (FOR ALL SCALES) — Bank Promotions.
One-liners from this chapter
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What is microfinance?
Microfinance refers to the provision of small-scale financial services such as credit, savings, insurance, and remittances to low-income individuals and micro-enterprises who lack access to formal banking services.
What is the maximum annual income limit of a household eligible for microfinance loans as per RBI?
Annual household income must not exceed Rs. 3 lakh.
Which regulatory body governs microfinance institutions (MFIs) in India?
The Reserve Bank of India (RBI) regulates Microfinance Institutions (MFIs) that are registered as Non-Banking Financial Companies (NBFC-MFIs) under the RBI Act, 1934.
What is the minimum membership period required for an SHG before it can avail bank credit?
At least six months of active functioning.
What is the loan limit for a microfinance loan to a household as per RBI guidelines?
As per RBI's revised guidelines (2022), the household annual income limit for microfinance borrowers is Rs. 3,00,000 (urban/semi-urban) and there is no separate rural/urban distinction; the aggregate indebtedness cap was removed and replaced by a 50% repayment obligation cap.
What is the typical group size of a Joint Liability Group in microfinance?
Four to ten members.
What is an NBFC-MFI?
An NBFC-MFI (Non-Banking Financial Company – Micro Finance Institution) is a non-deposit taking NBFC that extends at least 85% of its net assets as qualifying microfinance loans to low-income borrowers.
Which type of ATM is owned and operated by non-bank entities in India?
White Label ATM operated by non-bank entities.
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