The study uses quantitative and qualitative techniques to highlight different regulatory noncompliance practices exercised by the loan officers at the field level in their microfinance loan disbursements.
Sunil Sangwan, Institute of Rural Management, Anand, India.
Narayan Chandra Nayak, Indian Institute of Technology Kharagpur, Kharagpur, India.
Vikas Sangwan, Assistant Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.
Regulation is critical for sustainable microfinance sector growth. Under this premise, the study aims to examine the different regulatory noncompliance (RNC) practices prevalent in the operations of microfinance institutions (MFIs) at the ground level.
Both the quantitative and qualitative (observations, interviews and focus group discussions) are used to extract the findings.
The study highlights the different RNC practices exercised by the loan officers at the field level in their microfinance loan disbursements.
This study is based on the primary data collected from microfinance clients. The arguments put forth for the RNC practices are extracted from direct personal interviews with the loan officers and the clients. The role of various dilemmas/circumstances of the loan officers and the beneficiaries that implicate the MFIs in RNC is highlighted.
Published in: Journal of Financial Regulation and Compliance
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