Reserve Bank of India (2011) Report of the Sub-Committee of the Central Board of Directors of Reserve Bank of India to Study Issues and Concerns in the MFI Sector. Report, Mumbai.

has been cited by the following article:

• TITLE: Predicting Multiple-Borrowing Default among Microfinance Clients

  AUTHORS: Kanish Debnath, Priyanka Roy

  KEYWORDS: Microfinance, Multiple-Borrowing, Credit Default, Regulation

  JOURNAL NAME: Theoretical Economics Letters, Vol.8 No.10, June 20, 2018

  ABSTRACT: In order to control over-indebtedness that often leads to capacity failure, the Reserve Bank of India recently issued directives for Micro Finance Institutions to restrict multiple loans to borrowers. These institutions are also required to regularly share their current borrowers’ loan records with a Credit Information Company. We argue here that ex-post loan record verification is inefficient and inadequate considering the socio-economic and informational asymmetries in micro-credit markets. Instead, we reason, household characteristics can predict multiple-borrowing behaviour. Our empirical analysis shows that this is true to some extent. We dwell on policy implications and ways to improve our model.