How does microfinance accept deposits?

Question:

How does microfinance accept deposits?.

Micro Finance

Micro Finance refers to the process of providing small loans to individuals in areas where supply of such financial or banking facilities is inadequate in order to empower them and make them self reliant.

Answer and Explanation:

Micro Finance Institutions are not allowed to accept any demand deposit as per the Reserve Bank of India (RBI). Hence, Micro finance institutions do not accept deposits.


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