H R Khan appointed as Chairman of CRL Committee

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H R Khan, former deputy governor of RBI, has been appointed as the first chairman of the steering committee of the Code for Responsible Lending (CRL) in micro-credit.

  • Microfinance Institutions Network (MFIN) and Sa-Dhan launched the CRL in September 19, along with Finance Industry Development Council (an association of NBFCs).
  • Code for Responsible Lending (CRL) is a self-regulatory step for the Micro-credit institutions like NBFCs, NBFC-MFIs, SFBs etc. to follow the standard of customer protection.
  • The CRL was envisaged to be supervised and guided by a steering committee under an eminent independent chair.
  • The code proposes to cap the total indebtedness of a borrower to Rs 1 lakh and bar more than 3 lenders offering loans to a single borrower.
    • The other members of the committee include:
      1. Harsh Shrivastava of MFIN
      2. P Satish of Sa-Dhan
      3. Srinivas Bonam of IndusInd Bank
      4. Sonia Krishnankutty of L&T Finance among others