How New Regulations of Micro Finance Sector Transform the Old Ones and Its Impact

Abstract

Old and new regulations in the microfinance industry in India are compared in this paper. For providing financial services to small businesses and low-income individuals, the microfinance sector plays a significant role. Over time, for ensuring consumer protection and addressing the emerging challenges appropriately the regulatory framework governing the microfinance industry has evolved. Including broader applicability for various regulated entities, introducing new regulations has brought about significant changes. The aim of conducting this research is to analyze the transformations in regulations along with their impact on the microfinance industry. The paper initiated an introduction to the microfinance industry and its importance in India. The requirements for the regulatory reforms are highlighted within the problem statement section, while the study objectives are outlined clearly in the research purpose section. The significance of understanding the regulatory change’s impact on industry functioning is emphasized within the relevance and significance section. To guide the study effectively there are three research questions well formulated in this paper. The barriers and issues associated with the old regulations are discussed during the study and for providing a comprehensive understanding of the subject, the literature review is conducted. The approach used for the collection and analysis of data is clearly outlined within the methodology section. The empirical data is provided within the research findings, analysis, and results section. The valuable insights into the impact of new regulations are provided clearly within this section. The key findings and recommendations for policymakers are summarized in the conclusion section.