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Question : Which committee recommended the formation of a new category of NBFC i.e., Non-Banking Financial Company-Micro Finance Institution?

Option 1: Shah Committee

Option 2: Malegam Committee

Option 3: Kamath Committee

Option 4: Hussain Committee


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Malegam Committee


Solution : The correct answer is the Malegam Committee.

Malegam Committee introduced a new category of Non-Banking financial company - Micro Finance Institution. The Reserve Bank of India set up a sub-committee for the creation of a separate category of NBFCs. The committee recommended conditions to be satisfied for NBFCs to be classified as NBFC-MFI. Microfinance term was first used in the 1970s during the development of the Gramin Bank of Bangladesh by the microfinance Pioneer Muhammad Yunus.

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