What changed
The reporting format for microfinance progress reports has been revised to capture additional information. Banks must now submit these reports exclusively to NABARD's Micro Credit Innovations Department, not to RBI. The submission timeline remains half-yearly, within 30 days of the half-year end.
What it means for you
Banks need to update their internal reporting systems to align with the new format, which includes more granular data on SHG-Bank Linkage and MFI-Bank Linkage programs. The shift to NABARD-only submission streamlines regulatory reporting but requires banks to ensure timely and accurate data delivery to NABARD. This change may increase operational focus on microfinance data quality and compliance.
What you must do
- Obtain the revised reporting format from the RBI circular and update your internal microfinance data collection templates.
- Train relevant staff on the new format, especially the additional fields like SHG model vs non-SHG model for MFIs.
- Ensure half-yearly reports (as of September 30 and March 31) are submitted to NABARD's Micro Credit Innovations Department within 30 days.
- Verify that your bank's reporting covers all required segments: SHG-Bank Linkage and MFI-Bank Linkage, including NPA and recovery data.
Who it affects
All scheduled commercial banks (excluding RRBs) engaged in microfinance, Banks' microfinance or financial inclusion departments, NABARD's Micro Credit Innovations Department
What is the new submission deadline for microfinance reports?
Reports must be submitted within 30 days of the half-year end, i.e., by October 30 for September data and by April 30 for March data.
Do we still need to send reports to RBI?
No, the circular specifies that reports should now be sent only to NABARD's Micro Credit Innovations Department, not to RBI.
What additional information does the revised format capture?
The format now includes separate reporting for SHG model and non-SHG model under MFI financing, and requires gross NPA data for March returns only.