Question : Which of the following institutions is responsible for regulating and supervising the functioning of microfinance institutions in India?
Option 1: Reserve Bank of India (RBI)
Option 2: National Bank for Agriculture and Rural Development (NABARD)
Option 3: Securities and Exchange Board of India (SEBI)
Option 4: None of the above
Correct Answer: Reserve Bank of India (RBI)
Solution : The correct answer is (a). Reserve Bank of India (RBI).
The Reserve Bank of India (RBI) is the central bank of India and is responsible for regulating and supervising the functioning of all financial institutions in India, including microfinance institutions. The RBI has issued a number of guidelines and regulations for microfinance institutions, including limits on lending rates and margins, and requirements for disclosure and transparency.
