Reserve Bank of India page on Microfinance
I gave a search for Microfinance in India on the website of RBI and the above page popped up. Although, it may give some idea, I am not too sure whether an integrated picture (latest) could be arrived at by going through all the links. There are thousands of MFIs operating today and they are yet to be regulated by RBI or NABARD. In the mean time MFIs are making merry with high interest rates charged for the loans from the rural, uneducated poor women customers.
It is not mere credit or finance that is happening or needed by the people in the rural areas of our country. They also have a high expectation from the State. They should also be availing of the benefits accruing to their counter-part elite bank customers like Technology, Credit Rating, MFI Indexing, Securitisation, etc., that is taking place of late for MFIs. Millennium Development Goals of UN also have promised to deliver something concrete towards welfare economy including social and financial aspects.
One of the agencies working globally on MFIs is CGAP - Consultative Group to Assist the Poor. Not only in India, that MF is needed and happening in a big way or Bangladesh. Almost all countries have realised by the year 2000, that MF is an important tool to contain poverty and extend loans to all those who are eligible.
Showing posts with label NABARD. Show all posts
Showing posts with label NABARD. Show all posts
Wednesday, September 22, 2010
Tuesday, July 27, 2010
PeerPower : Disciplining the MFIs
PeerPower : Disciplining the MFIs
What a strange coincidence that on a day when SKS Microfinance, one of the leading MFIs of India is approaching the investing public with a huge IPO for about Rs. 1,600 crores to expand its operations, a news item appears exposing the weaknesses in the working of MFIs and the imperative need for disciplining them. Looks like although for some vague reasons, more than 300-400 small or medium scale MFIs are thriving in India amidst competition, regimentation and strict supervision. They are some times advised to be treated as NBFCs. Their rate of interest, branch expansion, credit policies, etc are not overseen by the regulator(s) - RBI or NABARD or SIDBI.
What a strange coincidence that on a day when SKS Microfinance, one of the leading MFIs of India is approaching the investing public with a huge IPO for about Rs. 1,600 crores to expand its operations, a news item appears exposing the weaknesses in the working of MFIs and the imperative need for disciplining them. Looks like although for some vague reasons, more than 300-400 small or medium scale MFIs are thriving in India amidst competition, regimentation and strict supervision. They are some times advised to be treated as NBFCs. Their rate of interest, branch expansion, credit policies, etc are not overseen by the regulator(s) - RBI or NABARD or SIDBI.
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