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The suggested framework in the Consultative Document is intended to be made applicable to the microfinance loans provided by all entities regulated by the Reserve Bank and is aimed at protecting the microfinance borrowers from over-indebtedness as well as enabling competitive forces to bring down the interest rates by empowering the borrowers to make an informed decision. The key proposals of the Consultative Document are enumerated below: A common definition of microfinance loans for all regulated entities. Capping the outflow on account of repayment of loan obligations of a household to a percentage of the household income. A Board approved policy for household income assessment.