Theme: Debt Distress

A new framework for monitoring credit markets for over-indebtedness

he microfinance movement in India is set to receive another dose of impetus with the Reserve Bank of India’s (RBI) recently released Consultative Document on Regulation of Microfinance in June 2021. Following the Malegam Committee Report, which is a decade old now, the current document looks to reassess and realign the priorities of the sector.

In this post, we revisit the issue of over-indebtedness in microfinance and provide a set of suggestions to address them

Excessive debt negatively affects households and can diminish any developmental gains from such debt. It also dampens a nation’s economic growth and threatens its financial stability.

Reports of growing debt stress among microfinance borrowers in Assam follows a similar path as those in AP. In this post we analysis this issue and provide possible solutions

In this report we propose Monitoring and Detection Framework for OID with twin outcomes in mind, that of financial stability and financial consumer protection

In this post, we investigate the cost of Interest on Interest (IoI), that emerged out of the RBI’s policy to grant a 6-month debt moratorium

Personal insolvency needs to be treated as a social insurance option. A mechanism which relies on the interaction between creditors and borrowers must be put in place

This problem can be solved by link-ups with large supply chains and networks that disperse risk and place small businesses in a better position to get loans and attract equity investors.

The provisions for insolvency, bankruptcy and fresh start for natural persons as contained in the Insolvency and Bankruptcy Code (IBC) 2016 are expected to shift the paradigm of the Indian consumer credit market.