MICRO FINANCE

RBI has recently opened a separate category of non-banking financial companies for micro finance institutions, namely, NBFC-MFI under its control to remove the ambiguity over regulation of MFIs. Under the guidelines issued on 2 Dec 2011, an NBFC-MFI should have minimum net owned funds of

• Rs. 3 crore

• Rs. 4 crore

• Rs. 5 crore

• Rs. 6 crore

• None of the above

As per the guidelines issued by RBI, all NBFC-MFIs should maintain an aggregate margin cap of not more than

• 8 per cent

• 9 per cent

• 10 per cent

• 12 per cent

• None of the above

The tenure of the loan issued by NBFC-MFI to the borrower should not be less than 24 months for loan amount in excess of

• Rs. 15,000

• Rs. 20,000

• Rs. 25,000

• Rs. 30,000

• None of the above

Which of the following groups of people does micro financing help the most?

• Impoverished women

• Impoverished men

• Children

• Village elders

• International banks

According to some microfinancing organizations, approximately what percentage of loans are repaid on time?

• 25%

• 53%

• 71%

• 95%

• 100%

Microfinancing firms focus their efforts in what part of the world?

• North America

• Asia Europe

• all third world countries

• countries with a debt-GDP ratio of over 75%

Agricultural finance is a tool of Micro finance.

• True

• False

Micro finance is different than conventional finance because:-

• They provide financial services

• They provide different saving schemes

• They cater both financial as well as non-financial services.

• They are part of banking system.

Which of the following statement is false:-

• Microfinance is the provision of loans and other financial services to the poor.

• India has been able to develop its own model of microfinance organizations in the form of savings and credit groups known as the Self Help Group (SHGs), which are bank-linked.

• Most of the microfinance institutions in India attempt to go beyond savings and credit groups to provide microfinance services in the form of savings and insurance.

• Micro finance is synonymous to micro credit.

The most significant role of MFIs:-

• Employment Generation

• Poverty alliviation

• Financial Inclusion

• Economic development