The RBI on Tuesday allowed Micro Finance Institutions (MFI) to lend up to Rs 1 lakh to small borrowers. The increase in the limit was suggested by Nachiket Mor committee on Comprehensive Financial Services for Small Businesses and low Income Households. The borrowing limit, excluding educational or medical expenses, has been doubled to Rs 1 lakh from the existing Rs 50,000, RBI said in its first bi-monthly monetary policy statement.