On March 14, 2022, RBI released it's Master Direction - Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022. 

In this knowledge session in partnership with Khaitan & Co and EY, we will find answers to following key questions:

1. How would the earlier definition of ‘qualifying asset’ under the extant framework be aligned with the introduction of a common definition of ‘microfinance loan’ under the Master Direction - Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022 (“Master Direction on MFL”)?  
2. Basis the above, whether the Master Direction - Reserve Bank of India (Regulatory Framework Master Direction on MFL apply to all categories of Non-Banking Financial Companies (“NBFCs”) providing loans below INR 3 Lakhs?
3. Does all categories of loans (such as personal loans) be considered as ‘microfinance loan’ under the Master Direction on MFL?
4. What are the key impact areas under the Master Direction on MFL vis-à-vis commercial banks, NBFCs (other than NBFC-MFI) and digital intermediaries facilitating loans below INR 3 Lakhs?
5. How does the Master Direction on MFL provide relief to the borrowers with respect to their repayment obligations and in this regard, what are the checks and balances (such as information and documents to be collected from borrowers) to be considered by NBFCs?
6. Is there any cap on interest rates to be charged to borrowers by commercial banks and NBFCs? Does this have any impact on existing interest rates charged on loans of amount less than INR 3 Lakhs?
7. What are the different internal policies to be formulated by NBFCs and commercial banks providing loan below INR 3 Lakhs?
8. Can NBFCs outsource any of their obligations under the Master Direction on MFL to any third party service provider.

Speakers

• Sanjay Khan Nagra, M&A, Partner, Khaitan & Co
• Keyur Shah, Partner, EY

The event is free for all but owing to limited seats, please RSVP early. Link will be shared on morning of the event