Microfinance Gateway>India: Government to Reintroduce Microfinance Bill

affiliate language sites: Français عربي Español

Home

Library

Jobs

Training and Events

Organizations

Consultants

Home » News & Opinion » India: Government to Reintroduce Microfinance Bill

India: Government to Reintroduce Microfinance Bill
Kohli, S.

The much-awaited Indian Microfinance Bill is likely to see the light of day during the upcoming budget session as the government is doing the groundwork to reintroduce it. The Bill, which seeks to regulate the growing microfinance sector, was originally introduced in Parliament in 2007. However, it lapsed due to the dissolution of Parliament before the elections.

The Bill assumes a lot of importance since the sector is growing at a rapid pace. For the last three years, the sector has been growing at almost 52% year-on-year in terms of the client base.

Read Full Article

Comments (2)	Submit a Comment

09 Feb 2010
MF Regulation

Best Government governs least too many regulations become channels to earn money by government line functionaries. MFI is a simple demand supply financial service sector and needs elderly support of state rather than strict regulations. Many rules in India are read in between lines and manipulated to user's own end. Interest rate control may figure in this control regimen which will be jeopardy to the spirit of demand and supply paradigm. MF is the only viable option for the needy in spite of awide network of formal institutions. Let us not forget that agriculture finance sector which was to be fully covered by state financial institutions has resulted in huge number of suicides of farmers. Any regulation attempt by government through Acts will only help the line functionaries to flex their muscles. If a District Collector is chairperson of District Consultative Commette on Credit (DCC) why is he not held responsible for so many suicides by farmers who have strong correlation with credit supply fallacy for suicides. It is going to only advantage Government at mid and lower levels. Let us not make MF industry another subprime sector in the making with half baked government policies.

divakar ratnagiri SKS India

05 Feb 2010
Micro finance and Role of Women

Microfinance should look into the aspect of women's wellfare.

Dheeraj Pao Asin Mkt Pvt Ltd India

Report Abuse

*First Name:		*Last Name:
Organization:
*Email:
*Country:
*Comment Title:
*Comment:

I do not want my name, email, or organization to appear with my comment. (Country will always appear with posted comments.)

By clicking "Submit" you confirm that you have read and consent to our Privacy Policy and Terms and Conditions.

Posted: 28 Jan 2010
Source: Indian Express
Originally Published: 28 Jan 2010