How to register a Microfinance company in India (on Wattpad) http://my.w.tt/UiNb/qNRX05sjdB Micro Finance Institutions are the type of NBFCs engaged in systematic processes, whereby banking services are provided to small level groups, mostly to poor and weak sections of the society who are not easily assessable to banking facilities. Therefore MFI mostly provides small loan to businesses and people. The security capital of Rs. 5 crores is required to be launched as NBFC's MFI to be kept as fixed deposit. The requirement of 2 crore is for NE. A well-developed project funding proposals needs to be presented before the banks and other funding agencies. RBI allows MFI below 100 crores of assets to charge. MFI's are non-deposit taking NBFC's other than companies under section 8 of Companies Act, 2013. There are certain RBI guidelines that needs to be followed such as minimum paid up capital shall be Rs. 5 Crore for MFI and for MFI is the north-east region of India is 2 crore also MFI needs to maintain 85% as qualifying assets. Process of Registration 1) Formation of the Company: A public limited company shall be formed under the Companies Act, 2013, with the name reflecting micro finance in it. This means the name should clearly define that it is a micro finance company. 2) Net owned fund: the paid up capital of MFI shall be Rs. 5 Crore and in north east region of India is 2 crore. 3) Opening Bank Account: The entire 5 crore amount shall be kept in fixed deposit. The capital raised should be from equity share capital and not preference share capital. 4) Application to RBI: application needs to be given for business operations. 5) After due diligence by RBI, the commencement of business is issued. Thus microfinance institutions serve as a financial source for entrepreneurs and small businesses which lack the banking related services. It thus provides services to low income employees, who are closer to retail financing.
