Originally Published: May 23, 2005
Source: Business Standard, India
The Reserve Bank of India (RBI) will soon announce which entities qualify as non-government organizations (NGOs) eligible to draw external commercial borrowings (ECBs) for microfinance activities. The list may include charitable trusts, partnership or proprietary firms, or non-banking finance institutions.
Lack of clarity in the definition of an NGO has led to banks rejecting applications of NGOs because banks wanted the RBI to clearly identify entities which are eligible to borrow through the ECB route. In the annual credit policy statement last April, the RBI had outlined the guidelines for eligible NGOs.
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