Regarding MFI

Yes, you can run a Micro finance institution under a trust. In this case you don't need to take any registration from RBI but you have to follow RBI guidelines.

and later on if you want to start a NBFC MFI, then trust are not allowed to start NBFCs. A NBFC should be a company registered under Companies Act. In that case you have to convert your Trust to section 8 company.

Thanku Sir
But income of Microfinance how can be managed in the Trust.
Plz give your valuable opinion Sir.

@ Rakesh Yadav

Is your trust registered u/s 12A of Income Tax Act

No Sir
It's registered u/s trust act

@ Rakesh Yadav

Will you please specify your query about managing income of MFI under Trust.

What issue you find running business of MFI under Trust

An Increasing number of microfinance institutions (MFIs) are seeking non-banking finance company (NBFC) status from RBI to get wide access to funding, including bank finance.

@ Karan Singh Sir

I am running MFI under my Trust, which is not registered u/s of 12A of IT and also my Trust haven't 80G.
But I am charging some interest on issuing loan amount according to RBI guidelines but my accountant told me that I can't show income form my Trust.
So I am confused about my earning through MFI.
How could I managed my earning by Trust.

it's my problem.

There is no issue in showing interest charged for providing loan to needy people.

Ask your accountant to show the interest income under Trust.

Additionally, it will be better to take registration u/s 12A of Income Tax Act to get benefit of sec 11, 12 and 13 of the Income Tax Act.

@ Rama Chary Rachakonda Sir

What is the criteria of funding from any Bank if MFIs run by Trust.