The maximum limit on microfinance loans for NBFCs other than NBFC-MFIs is _________

Correct option is D

The correct answer is (d) 25% of the total assets.
· As per the Reserve Bank of India (RBI) regulations, Non-Banking Financial Companies (NBFCs) other than NBFC-MFIs are allowed to have microfinance loans up to a maximum of 25% of their total assets.
· This limit is set to ensure that NBFCs maintain a diversified portfolio and manage risks associated with microfinance lending.
· NBFC-MFIs, or Non-Banking Financial Company - Microfinance Institutions, have different regulatory norms specifically tailored to their microfinance operations.
Information Booster:
· Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance business or chit-fund business, but does not include any institution whose principal business is that of agriculture, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property