large scale image
LCP Image

Back to TSCFM News

Microfinance industry body releases the fourth edition of code of conduct

October 06, 2022

Microfinance industry body releases the fourth edition of code of conduct
Microfinance Institutions Network (MFIN), the industry association for microfinance and a RBI-recognised self-regulatory organisation, has released the fourth edition of the Industry Code of Conduct (CoC). 

This CoC was released jointly with Small Industries Development Bank of India (SIDBI), the Association of Small Finance Banks of India (ASFBI), Sa-Dhan and the Finance Industry Development Council (FIDC). 

Sivasubramanian Ramann, Chairman & Managing Director, SIDBI said, “For us to take microcredit to every unserved household, we need all the regulated entities to unite with the single-minded objective of financial inclusion. The importance of following the principles of customer protection while lending cannot be over-emphasized. 

It is good to see that digital processes have also been covered by the CoC as many processes are digital and microfinance institutions have to play a vital role in spurring entrepreneurship and inclusion.

J P Sharma, CGM-Department of Regulation, RBI, said , “The fourth edition of the CoC is important in the wake of the new RBI microfinance framework. The customer has always been at the core of RBI’s policies and it is especially pertinent for low-income households. Following the CoC in letter and spirit will not only ensure customer protection, but also a disciplined approach to credit disbursement. The CoC will, therefore, be critical in view of the role that microfinance institutions are expected to continue to play in financial inclusion.” 

Important Links:

Recommended for you ...

Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services
Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services

February 12, 2024

Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices
Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices

February 12, 2024

Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices
Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices

February 12, 2024

Enquire Now
REQUEST A CALLBACK
Chat on WhatsApp