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Journalism of Courage
Reserve Bank of India RBI deputy governor Subir Gokarn today said though Micro Finance Institutions MFIs could be under stress,there is no threat to their survival.
This is a fact that the MFIs were facing funds shortage as banks are shying away. The MFIs might be under temporary stress,but not under threat, Gokarn told reporters at a financial inclusion programme here in South 24 Parganas district. Keeping this situation in mind,RBI has restricted the timeframe for submission of the Y H Malegam Committees report on MFIs to two months.
It is true that a longer timeframe is needed to make the findings of the committee more comprehensive,but a balance has to be struck between timeframe and comprehensiveness, he said.
Asked whether NBFCs would be allowed to act as business correspondents on behalf of commercial banks,he said there was a conflict of interest inherent in this.
