FM hopeful of early passage of micro-finance Bill

The Bill seeks to empower the Reserve Bank to regulate the micro-finance industry and fix a ceiling on interest rates on loans to be provided by lenders

Finance Minister P today said the proposed Bill on institutions will provide adequate legislative framework for development and regulation of the sector.

The Micro Finance Institutions (Development and Regulation) Bill, 2012 is currently being scrutinised by a Parliamentary Standing Committee.

"We are hopeful that the Bill will be cleared by the Standing Committee, then brought to for passage. Once the bill is passed, I hope that it will provide an adequate legislative framework for the entire gamut of micro-finance services," he said at MicrofinanceIndia Summit 2012 here.

The Bill seeks to empower the Reserve Bank to regulate the micro finance industry and fix a ceiling on interest rates on loans to be provided by lenders.

The Bill, which was drafted in the backdrop of problems faced by borrowers of MFIs in Andhra Pradesh and other states, seeks compulsory registration of MFIs with the RBI.

Stating that MFIs play an important role in financial inclusion, Chidambaram said, "responsible financing by way of transparency, interest rate rationalisation, respectful recovery procedure" are among the challenges the MFI sector faces.

He asked MFIs to verify data on borrowers with credit bureau so as to avoid multiple borrowing or over indebtedness.

"I will request the micro finance sector to adapt itself to the expectation of public at large especially with regard to their code of conduct," Chidambaram said.

Micro finance -- the business of doling out small loans at high interest rates to poor people who are unable to access conventional lending instruments -- has come under intense regulatory scrutiny in the wake of an Act passed by the Andhra Pradesh government.

image
Business Standard
177 22
Business Standard

FM hopeful of early passage of micro-finance Bill

The Bill seeks to empower the Reserve Bank to regulate the micro-finance industry and fix a ceiling on interest rates on loans to be provided by lenders

Press Trust of India  |  New Delhi 



Finance Minister P today said the proposed Bill on institutions will provide adequate legislative framework for development and regulation of the sector.

The Micro Finance Institutions (Development and Regulation) Bill, 2012 is currently being scrutinised by a Parliamentary Standing Committee.

"We are hopeful that the Bill will be cleared by the Standing Committee, then brought to for passage. Once the bill is passed, I hope that it will provide an adequate legislative framework for the entire gamut of micro-finance services," he said at MicrofinanceIndia Summit 2012 here.

The Bill seeks to empower the Reserve Bank to regulate the micro finance industry and fix a ceiling on interest rates on loans to be provided by lenders.

The Bill, which was drafted in the backdrop of problems faced by borrowers of MFIs in Andhra Pradesh and other states, seeks compulsory registration of MFIs with the RBI.

Stating that MFIs play an important role in financial inclusion, Chidambaram said, "responsible financing by way of transparency, interest rate rationalisation, respectful recovery procedure" are among the challenges the MFI sector faces.

He asked MFIs to verify data on borrowers with credit bureau so as to avoid multiple borrowing or over indebtedness.

"I will request the micro finance sector to adapt itself to the expectation of public at large especially with regard to their code of conduct," Chidambaram said.

Micro finance -- the business of doling out small loans at high interest rates to poor people who are unable to access conventional lending instruments -- has come under intense regulatory scrutiny in the wake of an Act passed by the Andhra Pradesh government.

RECOMMENDED FOR YOU

FM hopeful of early passage of micro-finance Bill

The Bill seeks to empower the Reserve Bank to regulate the micro-finance industry and fix a ceiling on interest rates on loans to be provided by lenders

Finance Minister P Chidambaram today said the proposed Bill on micro-finance institutions will provide adequate legislative framework for development and regulation of the sector.

Finance Minister P today said the proposed Bill on institutions will provide adequate legislative framework for development and regulation of the sector.

The Micro Finance Institutions (Development and Regulation) Bill, 2012 is currently being scrutinised by a Parliamentary Standing Committee.

"We are hopeful that the Bill will be cleared by the Standing Committee, then brought to for passage. Once the bill is passed, I hope that it will provide an adequate legislative framework for the entire gamut of micro-finance services," he said at MicrofinanceIndia Summit 2012 here.

The Bill seeks to empower the Reserve Bank to regulate the micro finance industry and fix a ceiling on interest rates on loans to be provided by lenders.

The Bill, which was drafted in the backdrop of problems faced by borrowers of MFIs in Andhra Pradesh and other states, seeks compulsory registration of MFIs with the RBI.

Stating that MFIs play an important role in financial inclusion, Chidambaram said, "responsible financing by way of transparency, interest rate rationalisation, respectful recovery procedure" are among the challenges the MFI sector faces.

He asked MFIs to verify data on borrowers with credit bureau so as to avoid multiple borrowing or over indebtedness.

"I will request the micro finance sector to adapt itself to the expectation of public at large especially with regard to their code of conduct," Chidambaram said.

Micro finance -- the business of doling out small loans at high interest rates to poor people who are unable to access conventional lending instruments -- has come under intense regulatory scrutiny in the wake of an Act passed by the Andhra Pradesh government.

image
Business Standard
177 22

More News

  • Bandaru Dattatreya Govt to meet trade unions on exposure of EPFO to markets
  • Nirmala Sitharaman Two per cent rate cut necessary to boost SMEs, create jobs: Nirmala Sitharaman
Widgets Magazine

Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard