Navaneeth M S

Thank you for your interest in this paper. Since we published it, we have received several comments from reviewers and are now working to revise it based on those comments. We will upload the revised version when it is ready.

The objective of this blog is to articulate the scope and relevance of various blended finance instruments in advancing access to suitable credit for nano entrepreneurs.

In this blog post, we analyse the changes in the direction and weigh them through the lens of customer protection and long-term sustainability. We also offer suggestions on streamlining the KYC updation (re-KYC) exercise without adding to systemic risks.

Debt distress among microfinance borrowers is on the rise, sufficiently so that it may be characterised as a crisis for the sector. This is driven by factors across the supply- and demand-sides, as well as factors inherent in the nature of the credit cycle, where periodic booms and busts have been present throughout history. To address this, we propose two sets of recommendations for the regulator: a set of recommendations that can be initiated in the short-term and another set that can be initiated over the medium-term.