There are no firm estimates, but the Indian commercial banks, which are the main source of funds for microfinance institutions (MFIs), have about $2bn in loans outstanding.
With growing demand for their services, several large MFIs want to be allowed to tap public deposits and this has raised the issue of their regulation. There have also been instances in which the MFIs have been accused of charging usurious rates of interest, most recently in the southern Indian state of Andhra Pradesh, where the state government barred a few MFIs from lending last year.
