MFIN wanted a heavyweight for this CRL project, which is a self-regulatory step for a diverse set of lenders engaged in microfinance such as banks, small finance banks, non-banking financial companies (NBFC), NBFC-MFIs and not-for-profit firms.
So far, 97 entities have signed the code which has proposed to cap the total indebtedness of a borrower to Rs 1 lakh and bar more than three lenders offering loans to a single borrower.
Four banks — Axis Bank, Kotak Mahindra Bank, ICICI Bank and IndusInd Bank — have signed the code. Others who have agreed to follow the code include 76 NBFC-MFIs, four small finance banks, two NBFCs and 11 not for profit firms.
The code was unveiled in September by MFIN and Sa-Dhan, along with Finance Industry Development Council, an association of NBFCs.