CEA urges microfinance sector to prioritise savings over credit

Chief Economic Adviser V Anantha Nageswaran warned that excessive lending and mis-selling have caused recurring crises in India's microfinance sector. Speaking at Sa-Dhan's Annual Conference in New Delhi, he urged institutions to prioritise savings and insurance over credit, cautioned against AI-driven over-lending, and stressed livelihood creation through micro-entrepreneurship for sustainable financial inclusion.