IMFs must move to make the PAN card the first identification for KYC and credit office reports
Mirco’s financial institutions (IMF) agreed to implement guidelines reviewed since June 1 to address the issue of prices, on indebtedness and discipline.
“The association argues that stronger guidelines should be introduced so that loan institutions safeguard the microfinance sector and, in particular, its clients. Three main conerns require urgent attention,” Jiji Mammen.
SA-DHAN is an association of impact finance institutions and a self-regulating organization (SRO) designated by RBI for microfinance institutions.
These additional guidelines were discussed the IMF CEO conference and other institutions. “The revised guard raills, or Sankalp 2.0, will be applied as of June 1, and the members are advised with scrupled,” said a statement after the meeting. SA-DHAN has around 220 members working in 33 states/UTS and around 646 districts, which include so much for profit and not to obtain profits, MFI, SHG promotion institutions, banks, qualification agencies, capacity construction institutions, etc.
The revised guidelines are categories under three heads: prices, on indebtedness and discipline.
Under the head of ‘loan price’, Leg said that loan institutions should follow transparent practices when setting loans.
The components of the interest rate (COF, OPEX cost, risk and margin margin) must be well defined and meet the guidelines issued occasionally. The interest rate must be justifiable and approved by the members of the Board. “The processing rate to limit 1.5 percent (excluding applicable taxes),” said the guidelines.
Speaking of “about indebtedness,” Leg said that the number of lenders for microfinance loans should not exceed 3 of all types of lenders.
“When considering a new loan, households with an exhibition combined in microfinance and retail loans will not demand ₹ 2 Lakhs, maintaining all guidelines, including the limit of reimbursement obligation of the monthly homes entered, prescribed by the by.
In addition, a new loan will not be granted to the same borrower, whose existing loan continues so pending, before the 12 months of disbursement of the existing loan or has not completed the reimbursement of the center of the same.
“Each microfinance loan must make an integral check of the Credit Office at home level. A report by the Customer Credit and Spouse / Co-Petroleum Office is also mandatory to verify the obligations of retail and microfinance loans.
According to the ‘Code of Conduct and Discipline’, that has determined to enforce the refund discipline between customers, no loan should be granted to any client that is in breach of any amount owed for more than 60 days with 000 and total. And total. And total. And total.
IMFs should make the PAN card the first identification for KYC and the reports of the credit office. You can try an aspirational level of coverage of 30 percent through bread at the end of this fiscal year. “The final use of loans must be verified to guarantee the proper use of loans for the requested purpose,” the guidelines said.
According to the statement, to verify the entry level personnel of the dropout rate and avoid fraud incidents, it is mandatory to carry out employee agency checks for each staff member before hiring.
Any personnel hired from the microfinance industry should only receive three months to produce a relief letter; Services must be suspended without it. At the same time, loan institutions should not retain the relief letter of any personnel member without justifiable reason, he said.
Posted on April 28, 2025