RBI constitutes panel to examine MFI functioning
This move appears to be a timely step by the regulator. SKS happened to be the first MFI to go in for IPO and set a new trend in the capital market. SEBI has permitted the same and we are witness many developments. Unfortunate incidents that occurred were Dr Mohammad Yunus criticising Dr Vikram Akula over the money-making at the expense of poor. And then, the dismissal of CEO of SKS, Mr Gurmani last fortnight taking the Board Room war to the open discussions. These were not expected of in a service sector like MFIs.
The issue of high rates of interest has been a permanent issue for debate and now the regulator, RBI seems to have gone wiser. Earlier, GOI declined to intervene over this issue and left it to the concerned State Governments. And, there have been reports about Political Parties entering the dispute of high interest rates in Andhra Pradesh, where there is predominance of MFIs. We have got to wait and watch the developments.