Reserve Bank of India governor Duvvuri Subbarao on Wednesday said the apex bank would take a call on micro finance Institutions (MFIs) only when it gets the Malegam Committee report, which is expected by the end of January.

Subbarao, who met Bengal chief minister Buddhadeb Bhattacharjee here on Wednesday, said the Malegam Committee report is time-bound. The timeframe given to them to submit its observations and recommendations on the country’s micro finance sector is very short and the apex bank would examine its various recommendations hopefully in January-February.

The YH Malegam committee was set up in November with the mandate to submit its report by the middle of January.

RBI deputy governor Subir Gokarn on Tuesday said the micro finance sector was not facing a threat to its existence following refusal of banks to lend money to them. “We are not at a point where the system is under threat; it does put some stress on them but that's why the timeframe of the Malegam committee is short.”

On MFIs, Gokarn said, “It establishes the last mile connectivity, something which the “broader financial sector” has failed to achieve. “We can’t afford to lose them, but at the same time, they have to operate in a way consistent with the broader inclusive agenda.”