When was the master direction of RBI on microfinance loans implemented?

Correct option is B

Correct Answer: (b) April 01, 2022
Explanation
· The Reserve Bank of India (RBI) implemented its revised Master Direction on Microfinance Loans on 1 April 2022.
· These guidelines introduced a uniform regulatory framework for all microfinance lenders, including NBFC-MFIs, banks, and other NBFCs, ensuring better borrower protection.
Information Booster
· Key features included:
· Removal of the cap on microfinance lending rates.
· Household income-based loan assessment.
· Enhanced transparency in loan terms and borrower obligations.
Additional Knowledge
· Microfinance aims to support low-income households through small-ticket loans.
· RBI defines a microfinance loan as a collateral-free loan given to households with annual income not exceeding prescribed limits.