As all MFIN Member MFIs are regulated by the Reserve Bank of India (RBI), they are already required to follow all prudential norms as well as consumer protection practices laid down by the RBI. This Code of Conduct is designed to ensure that the RBI Guidelines are followed in both letter and spirit, and in some matters, lays down additional requirements.
All members should clearly convey to the borrowers the following terms of the loan (at the minimum):
The communication should be in writing through any/various of the following ways:
The communication should be in a medium understood by the borrower
The code of conduct will not specify the nature and quantum of charges to be charged by individual MFIs. However, the transparency of the same should be ensured as covered in clause ( I.i.)
Multiple Lending & Lending Limits
Amendments to this code conduct
Any amendments to this Code of Conduct will be adopted through the due process of first, a Board majority approval and thereafter ratification by a majority of the General Body.