Press Esc to close
Saturday 23 May 2015
News updated at 5:06 PM IST
Weather
Max: 31.5°C
Min : 22.8°C
In Bengaluru
Sunny day

FM hopeful of early passage of micro finance Bill

New Delhi, Nov 27, 2012, (PTI) :

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.

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 Parliament 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 interest rates ceiling 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 for 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 must be followed by micro finance institutions" are among the challenges the MFI sector face.

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.


Go to Top

Photo Gallery
Guru Arjun Devji's martyrdom day...

Guru Arjun Devji's martyrdom day...

People admire at a part of bronze statue of Lachit Borphukan...

People admire at a part of bronze statue of Lachit Borphukan...

Youths pelt stones at the police during a protest...

Youths pelt stones at the police during a protest...

Students celebrate their success in the West Bengal...

Students celebrate their success in the West Bengal...

Young girls shelter under an umbrella during heavy rains...

Young girls shelter under an umbrella during heavy rains...

Kashmiri Muslims cry and pray upon seeing a relic of Prophet Mohammed...

Kashmiri Muslims cry and pray upon seeing a relic of Prophet Mohammed...

Defence Minister Manohar Parrikar and Army Chief General Dalbir Singh Suhag...

Defence Minister Manohar Parrikar and Army Chief General Dalbir Singh Suhag...

Nomads during seasonal migration from Jammu province...

Nomads during seasonal migration from Jammu province...

Bollywood actors Lauren Gottlieb, left, and Jackky Bhagnani...

Bollywood actors Lauren Gottlieb, left, and Jackky Bhagnani...

Irate mob torch a truck after it killed a man...

Irate mob torch a truck after it killed a man...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523