Malegam Report on MFIs in India

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.

'Pregnancy Financing' by CIFD

Amazing Product Development! I just can't believe such a product being thought of by CIFD (refer http://www.ifmrblog.com/ or  http://ifmrblog.com/2010/07/29/cifd-to-launch-pregnancy-financing-product/). In a country like ours, there exist several types of social issues and problems. We are struggling to extend all the amenities and facilities, particularly to the rural population. They are starving for all the basic amenities, infrastructure, etc let alone quality of life. Our leaders and policy makers are preparing Plan after Plan with 12th Five Year Plan in the offing.

World over, UN is focussing on Millennium Development Goals! But, then in over sixty years of independence and becoming a republic, India has a long way to go to pass on the modern way of life to the rural folk. Elected Representatives to Zilla Panchayats, Assemblies and Parliament conveniently forget to tackle the social issues that they promise before elections. Local Area Development funds are not effectively expended. The divide between Urban and Rural is widening year after year. Electronic media is unable to spread the messages to the rural population.

Child marriages and girl child issues are still persisting. Women are not being granted the respect due to them. Parliamentarians including those belonging to Socialistis philosophy and even progressive women leaders are also consciously opposing the one-third reservation bill after thirteen years of discussions and debates. Yes, while I am not too sure about the sincere and strict implementation of all the Industrial Relations / Labour Laws in favour of women, children and workers are not carried out, how can we expect the State to extend facilities like income during the pregnancy or post-delivery period. This initiative of CFMD is laudable, indeed. If only, PSBs also take a leaft from this!

Micro Finance and Developments : Networking

Microfinance and Networking

Yet another development for monitoring of Microfinance Institutions in India  through an Ombudsman and Credit Information Bureau.  It is a laudable development that 39 leading MFIs / NBFCs coming together to form a Self Regulatory Organisation (SRO) in the name of Microfinance Institutions Network (MFIN) to observe self-discipline.  Earlier, we had SROs for Banks (IBA), Mutual Funds (AMFI), Merchant Bankers (AMBI), NBFCs, Credit Card Operators and so on. In a healthy financial system such organisations could play a vital and positive role to oversee the working of its members and help build a professional level playing field.