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Unit 14: Financial Regulations

4. three 5. weak Notes
6. Role ambiguity 7. Reserve Bank
8. note-issuing 9. money
10. Stabilisation 11. Selective credit controls
12. Central Banks 13. Bank rate
14. interest rates 15. OMO

14.7 Further Readings

Books G. M. Meier and R. E. Baldwin, Economic Development, Theory, History, Policy,
John Wiley & Sons, INC, New York, 1957, p.2.
George Rosen, Industrial Change in India, Asia Publishing House, Bombay, 1959,
p.1.

W. Arthur Lewis, The Theory of Economic Growth, George Allen & Unwin Ltd.,
London, 1956, p11.
Ragnar Nurkse, Problems of Capital Formation in Underdeveloped Countries,
Basil Blackwell, Oxford, 1955, p.2.Ibid.

Online links www.sebi.gov.in

www.sebi.com
investor.sebi.gov.in
sebiedifar.nic.in



Case Study RBI asks Banks to fund Self-help Groups Directly

Alarmed at micro-finance institutions' exposure to SHGs.

Both public and private sector banks were too "lethargic" in financing and re-financing
SHGs, which has "led to MFIs taking advantage and becoming aggressive lenders at high
rate of interest".
Alarmed at micro-finance institutions' exposure to self-help groups (SHGs), the Reserve
Bank of India has asked public and private-sector banks to step up lending to SHGs. This
directive also comes at a time when micro-finance institutions (MFIs) have been asked to
reduced their high rate of interest being offered to their customers.

Speaking at a Dharwad District Consultative Committee meet recently, an RBI official
said that both public and private sector banks were too "lethargic" in financing and re-
financing SHGs, which has "led to MFIs taking advantage and becoming aggressive lenders
at high rate of interest".

Contd...

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