The Reserve Bank of India (RBI) has fixed the average base rate for NBFC-MFIs to be charged from their borrowers at 7.98 percent for the quarter starting July 1; 2021.
The rate which was applicable in April- June quarter was 7.81 percent but now as per the central bank it has to be increased to 7.98 percent
The Reserve Bank of India has today communicated that the applicable average base rate will be made to be charged by Non-Banking Financial Company Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning 1st July 2021 and it will have the rate of 7.98 percent, said a Reserve Bank of India statement.
Reserve Bank of India, at the end of last working day, gave the advice that average of the base rates of 5 largest commercial banks will have to arrive at interest rates to be charged by Non-Banking Financial Company as per Microfinance institutions.
Reserve Bank of India, the central bank hiked the applicable mean base rate to be charged by non banking financial companies’ microfinance institutions [NBFC-MFIs] to their borrowers for the quarter beginning on July. The mean base rate has been increased from 7.81 percent to 7.98 percent.
The Reserve Bank of India, in its circular dated 7 February 2014, had directed that the Non-Banking Financial Companies and Micro Finance Institutions regarding the pricing of credit, under which, it will be on the last working day of every quarter, advise the average of the base rate of the 5 largest commercial banks to arrive at the interest rates to be charged by Non-Banking Finance Companies Micro Finance Institutions in the next quarter to every one of them in their borrowers’ list.
Besides that, the Reserve Bank of India has also imposed penalties on 4 cooperative banks, including Rs 1.12crore fine on Hyderabad-based Andhra Pradesh Mahesh Co-operative Urban Bank, for contravention of certain regulatory directions.
RBI has imposed a penalty of Rs 62,500 lakh has been imposed on The Ahmadabad Mercantile Co-operative Bank, Ahmadabad; Rs 37.50 lakh on SVC Co-operative Bank, Mumbai; and Rs 25lakh on Saraswat Cooperative Bank, Mumbai.
