<h1>New Rules Boost Rural Financial Literacy and Regulate Microfinance Loans Under Section 12 Guidelines</h1> A national development bank and the central bank have implemented multiple initiatives to enhance rural financial literacy and streamline microfinance regulations. Over 2,400 community financial literacy centers have been established, and programs promoting digital and banking awareness in rural areas are supported. The central bank has simplified the definition of microfinance loans, removed several quantitative restrictions, and eliminated the requirement that a minimum portion of loans be for income generation. To protect borrowers, a repayment ceiling of 50% of monthly income has been set, and guidelines for fair recovery practices have been mandated. Interest rates on microfinance loans have been deregulated, requiring regulated entities to adopt transparent, board-approved interest rate policies. Self-regulatory organizations in the microfinance sector monitor compliance and have introduced measures to limit borrower indebtedness. Credit institutions must report borrower income and loan data to credit bureaus to prevent over-indebtedness, ensuring responsible lending and borrower protection.