The Reserve Bank of India said on Tuesday it has set up a sub-committee to study issues such as high interest rates, coercive recovery processes and multiple lending practices by some micro-finance institutions.

The statement said the committee will study the issues and concerns in the sector, including ways and means of making interest rates charged by them reasonable, and submit a report within three months. The sub-committee will be chaired by Y.H. Malegam, a senior member of the central board of directors at the bank, the statement said.

Published Date : wednesday , Oct 20, 01:50PM IST

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