The Credit Guarantee Scheme for Micro Finance Institutions was announced in June as part of a Rs 6.29 lakh crore package to provide relief to various sectors affected by second wave of the pandemic.
Waving off the microfinance loans of women was a poll promise of the ruling BJP.
The growth was driven by an addition of 4 lakh borrowers during the pandemic-struck 12-month period ending March 2021,
As part of a consultation paper, apex banking regulator RBI has proposed removal of the ceiling on interest rates and instead proposed board-approved policies to determine it.
Considering the likely rise in delinquencies and restructuring, Krishnan Sitaraman said, higher provisioning is also warranted to absorb the shocks.
The crisis-ridden microfinance industry has started to see collections falling again overshadowed by the raging second wave of the coronavirus pandemic.
ICRA Ratings said in the report that a majority of micro finance institutions will somehow be able to withstand any stress due to their improving collection efficiency.