DFS Secretary Flags MFI Inefficiency, Urges Fair Interest Rates

Imagine special banks for people who don't have much money, called microfinance institutions (MFIs).

The main person in charge of financial services in India thinks some of these MFIs are charging too much interest.

He believes this is because they aren't working as efficiently as they could be.

He wants them to improve how they work so they can charge less interest to people who need loans.

He also said that many young people still don't have access to these financial services, and MFIs need to find new ways to help them.

At the same event, a chairman from NABARD, an organization that helps rural areas, said that the problems in the MFI sector are getting better.

NABARD is also creating a special credit score just for people in villages and for groups that help each other save money.

This new score will help these people get loans more easily because the regular credit scores don't work well for them.

This is important for helping everyone in the villages grow their businesses and improve their lives.