Stress in microfinance sector doubles in April to September period: RBI

The Reserve Bank of India (RBI) reported a doubling of stress in the microfinance sector during the April-September period. The rise in non-performing assets (NPAs) is attributed to increasing loan defaults amid economic instability and poor financial conditions of borrowers. The RBI’s findings highlight the vulnerabilities in the microfinance sector, particularly in rural areas. The regulator has called for better risk management practices and improved monitoring of microfinance institutions to ensure sustainability and prevent further distress in the sector.