Microfinance News Digest

Changes in draft Microfinance Bill shocks Indian MFI’s – News Digest

Changes in draft Microfinance Institutions Bill shocks the microfinance sector
A last-minute change in the bill to govern microfinance institutions has sent banks and the industry into a tizzy. The bill has raised the loan credit limit tenfold, a move that could alter the character of these lenders from tiny loan providers to the poor to financers of the relatively affluent. Read more on Economice Times

microfinance bill finance ministry 2011

Banks asked to ensure every family has at least one savings bank account by June
The finance ministry has directed all state-run banks to ensure that every household has at least one savings bank account by the end of June, a move seen as a precursor to direct transfer of benefits under the government’s financial inclusion plan. ET

Banks jittery over changes in banking correspondent model
In a bid to improve the economics of rural banking, a division of the finance ministry is driving a radical change in the business of banking correspondents-people who move around with handheld terminals and essentially bring the bank home. ET

Business correspondents’ pay likely to be raised
According to bankers, the minimum basic remuneration for BCs will now be Rs 2,500, besides fees for every transaction they carry out. For instance, for opening a savings bank account, the BC will now get Rs 20 per transaction, and Rs 5 for opening a recurring/fixed deposit. HBL

RBI, finance ministry differ over rural bank branches
The Reserve Bank of India, RBI, and the finance ministry seem to have differences on the way banks should go about ensuring financial inclusion. While both the regulator and the ministry are passionate about providing banking services at low cost to the disadvantaged, a difference of opinion between the two has confused bankers. ET

To Top