Explanation:

...First statement is incorrect. Mutual funds are compulsorily registered with the Securities and Exchange Board of India (SEBI), which also acts as the first wall of defence for all investors in these funds.
A microfinance institution is an organization that offers financial services to low income populations. Almost all give loans to their members, and many offer insurance, deposit and other services.
• MFIs are the pivotal overseas organizations in each country that make individual microcredit loans directly to villagers, micro-entrepreneurs, impoverished women and poor families.
• An overseas MFI is like a small bank with the same challenges and capital needs confronting any expanding small venture but with the added responsibility of serving economically-marginalized populations.
• Many MFIs are creditworthy and well-run with proven records of success, many are operationally self-sufficient.
RBI stated that MFIs can disburse loans to a borrower with a rural household annual income of Rs.100, 000 as compared with the earlier limit of Rs.60, 000. In case of customers in the urban or semi-urban regions, the annual income limit has been raised to Rs.160, 000 from Rs.120, 000 earlier.
In the first disbursement cycle of the loan, MFIs can give up to Rs.60, 000 out of the total loan amount. This limit was fixed at Rs.35, 000 earlier, RBI said. In subsequent cycles, the companies can now disburse up to Rs.100, 000 as compared with Rs.50, 000 earlier.
Individuals are not given loan above rupees 50,000/