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Regulatory non-compliances in microfinance operations: a survey of Indian microfinance institutions

Sunil Sangwan (Institute of Rural Management, Anand, India)
Narayan Chandra Nayak (Indian Institute of Technology Kharagpur, Kharagpur, India)
Vikas Sangwan (Jindal Global Business School, O.P. Jindal Global University, Sonipat, India)

Journal of Financial Regulation and Compliance

ISSN: 1358-1988

Article publication date: 7 August 2023

Issue publication date: 27 October 2023

64

Abstract

Purpose

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.

Design/methodology/approach

Both the quantitative and qualitative (observations, interviews and focus group discussions) techniques are used to extract the findings.

Findings

The study highlights the different RNC practices exercised by the loan officers at the field level in their microfinance loan disbursements.

Originality/value

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.

Keywords

Acknowledgements

Data availability statement: The data supporting the findings of this study are available with the corresponding author to be shared on reasonable request.

Compliance with ethical standards.

Funding: This study was not funded by any organization.

Conflict of interest: The authors declare that they have no conflict of interest.

Citation

Sangwan, S., Nayak, N.C. and Sangwan, V. (2023), "Regulatory non-compliances in microfinance operations: a survey of Indian microfinance institutions", Journal of Financial Regulation and Compliance, Vol. 31 No. 5, pp. 714-728. https://doi.org/10.1108/JFRC-01-2023-0001

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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