In which of the following years did the Reserve Bank of India introduce a comprehensive regulatory framework for Non-Banking Finance Company- Micro Finance Institutions?​

Correct option is A

​The correct answer is (a) 2011​

Explanation: 

• In 2011, the Reserve Bank of India (RBI) introduced a comprehensive regulatory framework for Non-Banking Financial Companies (NBFCs) involved in Microfinance Institutions (MFIs).
• This framework was designed to provide a structured and regulated environment for Microfinance Institutions operating in India, ensuring the financial stability and protection of consumers in the microfinance sector.

Impact of the 2011 Framework:

• Growth and Expansion: The regulatory framework led to increased growth and stability for microfinance institutions, allowing them to better serve marginalized populations in India.
• Consumer Protection: The framework enhanced consumer protection by setting standards for interest rates and loan recovery practices. It made microfinance loans more accessible and affordable for the underserved population.
• Financial Inclusion: The framework played a significant role in advancing financial inclusion by providing formal financial services to low-income households that previously had limited access to banking services.
• Transparency and Trust: By regulating the activities of NBFC-MFIs, the RBI helped build trust between microfinance institutions and borrowers, ensuring better transparency in their dealings.