MUMBAI: The astronomical pay packages of promoters of microfinance institutions (MFIs) will come under intense scrutiny of banks that have extended funds to bail out the sector once touted as the torchbearer of financial inclusion.
Lenders involved in debt restructuring of these institutions will now get a seat on the board of these institutions and use this opportunity to monitor not only the recovery of loans but also the compensation of promoters.
“We will monitor the remuneration policies followed by these MFIs,” said a banker involved in the negotiations. “We have cleared corporate debt restructuring scheme of about 4,500 crore for four MFIs last week.”