Mumbai: Micro Finance Institutions Network (Mfin), an association of micro-lenders in India, on Tuesday said it had received the status of a self-regulatory organization (SRO) from the Reserve Bank of India (RBI).

Microfinance institutions (MFIs) borrow from banks and extend small loans to low-income borrowers typically at interest rates ranging between 24% and 36%.

Last year, the RBI had said that it would recognize industry associations as SROs based on the recommendations made by the Y.H. Malegam committee.

Mfin claimed that this was the first time the RBI had bestowed SRO status on any industry body.