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The regulator of Micro Finance in India is ________.

1. Finance Ministry
2. Reserve Bank of India
3. State Bank of India
4. None of the above

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Correct Answer - Option 2 : Reserve Bank of India

The correct answer is the Reserve Bank of India.

The regulator of Micro Finance in India is the Reserve Bank of India.

  • Microfinance:
    • It is a banking service provided to unemployed or low-income individuals or groups who have no other access to financial services.
    • It is also called microcredit​.
  • Microfinance Institutions Network (MFIN) in India is a Self-Regulatory Organization.

  • Reserve Bank of India (RBI):
    • RBI was set up on the basis of the Hilton Young Commission recommendation in April 1935, with the enactment of the RBI Act, 1934.
    • Its first Governor was C.D. Deshmukh.
  • Finance Ministry regulates fiscal policies.
  • The State Bank of India was earlier known as the Imperial Bank.
    • It was nationalized in 1955 on the recommendation of the Gorewala Committee and rechristened as State Bank of India.

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