Inflationary pressures, reduction in discretionary cash flows may impact collection of MFIs: Report
New Delhi, Jun 22 (PTI) Risks such as potential inflationary pressures or reduction in discretionary household cash flows are likely to affect repayment behaviour of microfinance borrowers, even though the West Asia conflict has not directly affected the sector, a Crisil report said. Moreover, the impact of the El Nino phenomenon on rural incomes will bear watching, the report said. States such as Karnataka, Tamil Nadu and Bihar have introduced legislations for tighter oversight on unregulated microfinance lending practices, including enhanced borrower protection norms, restrictions on recovery practices and stricter compliance guidelines, it said. According to the report, Karnataka saw