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SKS Microfinance welcomes the RBI acceptance of the framework regulations recommended by the Malegam Committee

May '2011

Hyderabad, May 3, 2011 – SKS Microfinance, the largest microfinance institution in India, has welcomed the Reserve Bank of India’s acceptance of the Malegam committee recommendations. “The RBI Governor’s statement accepting the framework of regulations recommended by the Malegam Committee have provided a tremendous boost to the microfinance sector and reaffirm the critical role microfinance plays in financial inclusion,” said Vikram Akula, Chairperson, SKS Microfinance.

S. Dilliraj, CFO, added, “We are particularly pleased to see that that the RBI has re-affirmed priority sector status for microfinance and broadened some of the parameters, such as increasing the annual income limits for eligible households to Rs.60,000 for rural and Rs.1,20,000 for urban and semi urban, increasing the interest cap to 26% and margin cap to 12%, and increasing the total permitted outstanding to Rs. 50,000. These limits are well suited to SKS’s current operating model and will enable us to continue to meet the funding requirements of all our 7.2 million members across the country.”

He added, “for a sector leader like SKS, who is fully equipped to comply with the enhanced supervisory standards, the RBI statement brings in regulatory clarity and funding certainty.”

>> SKS Microfinance welcomes the RBI acceptance of the framework regulations recommended by the Malegam Committee (pdf)