As per the guidelines issued by the Reserve Bank of India in June 2021, each NBFC-MFI is required to maintain not less than ________ of its net assets as ‘qualifying assets’.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 85%.
As per the guidelines issued by the Reserve Bank of India in June 2021, each NBFC-MFI is required to maintain at least 85% of its net assets as ‘qualifying assets’. These assets include loans given to low-income households with specific income and loan size criteria. This ensures that microfinance institutions primarily focus on providing credit to economically weaker sections of society.