After RBI strictures, MFIs tighten norms to make lending more responsible

Following strictures from the Reserve Bank of India (RBI), microfinance institutions (MFIs) are tightening their lending norms to ensure more responsible lending practices. The RBI's guidelines aim to prevent over-borrowing and reduce the risk of defaults. MFIs are implementing stricter credit assessment procedures and ensuring better debt management practices. This move is expected to enhance the stability of the microfinance sector and protect borrowers from debt traps.