SKS Microfinance has announced that it will seek legal aid on whether the AP government's
ordinance on regulating MFIs is applicable to it.
The microfinance industry association - Microfinance Institutions Network (MFIN) - is reportedly planning to "move a stay petition against the ordinance".
SKS has said that since it is an NBFC (Non-Banking Financial Company), it is under the purview of the RBI and is regulated by it. It has added that as far as interest rates on MFI loans are concerned, the company is willing to reduce them if the RBI or the Finance ministry directs it to.
The company, which currently charges interest rates of 26%, has said that it is ready to lend at 24%, the rate that the Finance ministry directed public sector banks to ensure that MFIs don't cross.