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Journalism of Courage
The RBI has allowed micro-finance institutions (MFIs) to raise up to $10 million through external commercial borrowings (ECBs) against the earlier limit of $5 million,a move that will widen their fund raising sources.
Considering the specific needs of the micro-finance sector,the existing ECBs policy has been reviewed in consultation with the government of India and it has been decided that micro-finance institutions may be permitted to raise ECB up to $10 million or equivalent during a financial year for permitted end-uses,under the automatic route, the RBI said.
NGOs engaged in micro-finance activities can avail of ECB up to $10 million under the automatic route.
