​In March 2022, the Reserve Bank of India (RBI) increased the eligibility criteria for microfinance loans to a household having an annual income of up to _________.​

Correct option is A

The correct answer is (A) Rs. 3 lakhs.

• The Reserve Bank of India (RBI) removed the interest rate ceiling on the loans and raised the qualifying requirements for microfinance loans to households with annual incomes of up to Rs 3 lakh.
• Additionally, it requested that all lenders implement a board-approved pricing strategy.
• The RBI stated that it will examine the rates offered by the lenders to ensure that they do not charge usurious rates.
• The RBI also requested that the lenders set a cap on the cost of loans and associated expenses.
• The microfinance institutions are expected to provide a prospective borrower with a standardised simplified fact sheet that includes pricing-related information.