SIDBI Chief calls upon all regulated entities to aim for financial inclusion

New Delhi, Oct 7 (KNN) All the regulated entities need to unite with the single-minded objective of financial inclusion to take microcredit to every unserved household, said Sivasubramanian Ramann, Chairman & Managing Director, SIDBI.

He was commenting on the fourth edition of the Industry Code of Conduct (CoC) jointly released by SIDBI, regulator of MSME financing, the Association of Small Finance Banks of India (ASFBI), Sa-Dhan and the Finance Industry Development Council (FIDC).

Ramann said that the importance of following the principles of customer protection while lending cannot be over-emphasized. 

“It is good to see that digital processes have also been covered by the CoC as many processes are digital and microfinance institutions have to play a vital role in spurring entrepreneurship and inclusion,” he added.

J P Sharma, CGM-Department of Regulation, RBI called the fourth edition of the CoC important in the wake of the new RBI microfinance framework.

Sharma further said that the CoC will be critical in view of the role that microfinance institutions are expected to continue to play in financial inclusion.

The primary focus of the Industry Code of Conduct has been to promote and advance ‘responsible lending’ practices in microfinance.  (KNN Bureau)