Consumer Protection Regulation:Microfinance Needs and Initiatives in India

Lack of consumer protection regulation for the Indian microfinance sector led to a repayment crisis in Andhra Pradesh in late 2010. The paper examines the salient consumer protection that led to the crisis, and also as how the 2011 RBI regulation addresses these issues. The paper also highlights a survey of microfinance institutions, gauging their response to the 2011 RBI regulation. The paper also includes an analysis of consumer protection components of the Micro Finance Institutions (Development and Regulation) Bill 2011, industry associations, regulation used around the world to achieve successful consumer protection policies in the microfinance sector.