Malegam Report on MFIs in India
The much awaited RBI Sub-Committee headed by Y H Malegam on MFIs in India has been announced. They have come out with timely recommendations. It is now incumbent on the RBI and GOI (also NABARD and SIDBI) to be pro-active in monitoring if not regulating the MFIs (particularly those who are profit-making) closely and ensure that the issue is not left to the respective State Government and allow crisis like Andhra Pradesh in the past over three months. Urgent corrective measures are to be taken by enacting the long awaited bill in Parliament; it is hanging since March 2007 and our people's representative have not paid attention.
All those who are directly or indirectly interested in this field should thank and appreciate the Committee for the quick and efficient report submitted by the members. Let the politicians not take advantage of the poor fate of farmers and rural credit delivery system for their political or selfish ends but work for development.