In which year did RBI introduce the regulatory framework for microfinance loans?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 2022.
The Reserve Bank of India (RBI) introduced a new regulatory framework for microfinance loans in 2022. This framework aimed to enhance the oversight and transparency of microfinance institutions, ensuring better protection for borrowers and improved practices in the sector. It included provisions for capping interest rates, standardizing loan terms, and setting norms for fair practices, reflecting the RBI’s commitment to fostering financial inclusion and ensuring responsible lending within the microfinance sector.