The Reserve Bank India (RBI), the nation’s central banking authority, has eased the maximum allowance of a variance of 4 percent between minimum and maximum interest rates on loans by microfinance institutions (MFIs) in order to encourage the provision of cheaper loans to those members of Scheduled Castes (SC), historically disadvantaged people in India, who earn less than double the international poverty line defined by the United Nations (UN) as USD 1.25 per day. The National Scheduled Castes Finance & Development Corporation (NSFDC), India’s governmental institution facilitating funds for the economic empowerment of SC families, will offer funds for such loans through select non-deposit taking microfinance institutions (NBFC-MFIs) .
By Hye In Arielle Oh, Research Associate
About Reserve Bank India (RBI)
Reserve Bank of India (RBI) is India’s central banking authority. Established in 1935, RBI undertakes consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies (NFBCs). Its tasks include supervising financial institutions, consolidating accounting standards, resolving legal issues in cases of banking fraud, monitoring non-performing assets and supervising the rating model for the banking sector. As of July 24, 2015, RBI reported total reserves of INR 22.6 trillion (USD 354 billion).
About National Scheduled Castes Finance & Development Corporation (NSFDC)
The National Scheduled Castes Finance & Development Corporation (NSFDC) is India’s governmental institution facilitating funds for the economic empowerment of members of Scheduled Castes (SC), historically disadvantaged people in India, who earn less than USD 2.50 per day. It works to fight poverty through skills training, financing self-employment projects and other income-generation schemes through State Channelising Agencies (SCAs).
Sources and Addition Resources:
 The Economic Times: “RBI eases MFI norms to provide cheaper loans to poor SCs,” http://economictimes.indiatimes.com/news/economy/finance/rbi-eases-mfi-norms-to-provide-cheaper-loans-to-poor-scs/articleshow/49187951.cms
 National Scheduled Castes Finance and Development Corporations: “Home,” http://www.nsfdc.nic.in/
 Reserve Bank of India: “Non Banking Financial Company – Micro Finance Institutions (NBFC-MFIs)” https://www.rbi.org.in/scripts/FAQView.aspx?Id=102
MicroCapital Universe: “Reserve Bank of India (RBI),” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Reserve+Bank+of+India+%28RBI%29
MicroCapital Universe: “National Scheduled Castes Finance & Development Corporation (NSFDC),” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Scheduled+Castes+Finance+%26+Development+Corporation+%28NSFDC%29
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