Addressing Borrower Distress- A Principle-based Approach
In this post, to help enhance the efficacy of relevant frameworks, we lay out the key principles that the two primary actors, the banking sector regulator and the regulated lenders, must be guided by while designing policies to tackle debt distress caused by severe economic shocks.
How Microcredit Borrowers Availed the COVID-19 Debt Moratorium: A Case Study
In this blog post-through a case study, we analyse how microcredit borrowers availed the debt moratarium and through that identify how much they may have been impacted by COVID-19 and lockdowns.
Detecting Borrower Distress
A new framework for monitoring credit markets for over-indebtedness
Gauging household income key for microfinance clients
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.
A Potential Regulatory Approach to Creditworthiness Assessments in Microfinance
In this post, we revisit the issue of over-indebtedness in microfinance and provide a set of suggestions to address them
A Framework for Detecting Over-indebtedness and Monitoring Indian Credit Markets
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.
Assam Crisis Brings to Fore Protracted Regulatory Issues in Tackling Borrower Debt Stress
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
Detecting Over-Indebtedness while Monitoring Credit Markets in India
The household sector, comprising of individuals, households, proprietorships, and other non-corporate entities, has over INR 46 trillion as outstanding in the Indian formal credit market. The ability to access credit enables an individual and her household to gain better financial wellbeing and economic welfare outcomes, and an excess of credit can diminish any developmental gains. […]
Detecting Over-Indebtedness while Monitoring Credit Markets in India: An Approach
In this report we propose Monitoring and Detection Framework for OID with twin outcomes in mind, that of financial stability and financial consumer protection
Must the Most Vulnerable Bear the Highest Costs? The Case of Interest on Interest during the Debt Moratorium
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
