What are the potential legal risks associated with establishing a microfinance institution in India?
Establishing a microfinance institution in India could entail legal risks related to regulatory compliance with the Reserve Bank of India's guidelines and the Microfinance Institutions (Development and Regulation) Bill, if enacted. Risks could include penalties for non-compliance, reputational risk due to over-indebtedness or coercive recovery practices, and legal action by borrowers or regulators.