RBI Flags Need for Microfinance Lenders to Reassess Borrower Pricing

RBI Deputy Governor Swaminathan has urged microfinance institutions to revisit their pricing strategies to ensure fairness and transparency for borrowers. He stressed that lending rates must reflect risk without overburdening low-income customers. The central bank also highlighted the importance of robust governance practices, responsible credit delivery, and ethical collection standards as the MFI sector expands rapidly across underserved regions.