Transformation of Microfinance Institutions into Small Finance Banks: Will it be a Roller Coaster?

MicroSave India Focus Note #121

In 2013, the Reserve Bank of India constituted a committee under the chairmanship of Dr. Nachiket Mor to further the goal of financial inclusion in India. The committee recommended differential licensing in the form of two categories: i) Payments Bank, and ii) Small Finance Bank (SFB). In this Note, the authors focus on the effect of these recommendations on the capital structuring of Microfinance Institutions (MFIs) that plan to become SFBs. 

About this Publication

By Singh, A., Singh, L. , Kumar, N.