Q. With reference to Microfinance Institutions, consider the following statements::
1.MFIs are financial companies that provide small loans to people who do not have any access to banking facilities.
2.NBFC-MFIs in India are regulated by Ministry of Finance.
Which of the statements given above is/are correct?
Answer: A
Notes:
- Statement 1 is correct: MFIs are financial companies that provide small loans to people who do not have any access to banking facilities.
- Statement 2 is incorrect: NBFC-MFIs in India are regulated by the Non-Banking Financial Company -Micro Finance Institutions (Reserve Bank) Directions, 2011 of the Reserve Bank of India
