RBI doubles lending cap for MFIs to Rs 1 L

The RBI on Tuesday allowed micro finance institutions (MFIs) to lend up to Rs 1 lakh to small borrowers. The limit hike was suggested by the Nachiket Mor committee. The borrowing limit, excluding educational or medical expenses, has been doubled to Rs 1 lakh from the existing Rs 50,000, RBI said in its first bi-monthly monetary policy statement in the new fiscal, which began on April 1.