We expect it to be around 5.5-6% in next couple of months, said Madan Sabnavis chief economist at Care Ratings. The RBI has proposed to remove pricing restrictions for microfinance institutions (MFIs) in a report that reviewed regulations for the sector. The report has proposed a uniform definition for microfinance loans for banks, MFIs, and non-banking finance companies, and said that lending to a household should be capped in relation to its income. Other proposals include doing away with the pre-payment penalty and collaterals for loans to households with annual income of Rs 1.25 lakh and Rs 2 lakh for rural and urban areas, respectively. If the recommendations are accepted lenders will have to disclose pricing in a standard simplified fact sheet. "In having a common definition of microfinance loans will ensure a level playing field, making it entity-agnostic as done by MFIN as part of its Code of Responsible Lending. The focus on responsibility on boards promoting good governance and sound operational policies is a welcome step, said Alok Mishra and director of MFIN an association of micro leaders. "The suggested framework in the consultative document is aimed at protecting borrowers from over-indebtedness as well an enabling competitive forces to bring down the interest rates by empowering the borrowers to make an informed decision, the RBI said in a statement. Delhi high court on Monday cancelled the bail granted to former Fortis Healthcare promoter shivinder singh in a case of alleged cheating, observing that his detention is necessary to unearth the "conspiracy hatched by him" and trace the siphoned off money. Allowing RFL's plea, the high court said that in the present case, the "nature and gravity of the accusation against respondentis serious.
