MFIN’s work hinges on its three verticals of Self Regulation, Advocacy & Development, Communications and Public Relations and State Initiatives.


Historically MFIN was conceived and structured as a Self Regulatory Organisation (SRO) for the microfinance industry and was instituted as a Society under the Registrar of Societies (AP Societies Registration Act 2001). The primary objective of setting up MFIN was to establish industry standards for responsible lending and client protection. It promotes robust systems and processes within the NBFC-MFI sector to contribute substantially to the financial inclusion agenda of the government.

MFIN is dedicated to client protection and transparency through effective and efficient regulation of the NBFC- MFI industry. Self regulation is instituted through:

  • Compliance with a comprehensive Common Code of Conduct
  • An Enforcement Committee which exercises oversight to ensure compliance with the Code of Conduct
  • An effective two tiered grievance redressal mechanism with each MFI having nodal officers for grievance redressal as well as helpline numbers
  • An effective Credit Bureau environment to regulate responsible lending and to guard against over indebtedness
  • A comprehensive self – assessment tool, the Responsible Business Index, which is a score card against various compliance parameters and is submitted quarterly by each MFI


In addition to these initiatives, MFIN State Chapters provide a common forum for MFIs to resolve state and district level operational issues.

Our independent regulation plays a critical role in the microfinance industry—by enforcing high ethical standards, bringing the necessary resources and expertise to regulation and enhancing client safeguards and market integrity.