60 billion (debt given through microfinancing), other formal institutions that had also given loans, are yet to recover Rs. For the poor“What we have to understand is that microfinancing institutions play a vital role in the economic system. Microfinance institutions have found a way over the cap by simply renewing old loans as the said cap applies only to new loans. When the Central Bank introduced an Act to streamline the industry in 2016 it enabled the registration of microfinancing institutions in two groups. He also said that there are ethical microfinance institutions mostly registered with the LMPA, with about 20,000 people are employed in them.

Source: Sunday Observer March 16, 2019 19:52 UTC