The Microfinance Institutions Network (MFIN), a self-regulatory organisation of microfinance companies is planning to make accreditation with two credit bureaus mandatory for all its members.MFIN members are mostly Non Banking Finance Companies(NBFC’s).MFIN also plans to enforce strict adherence to the conduct code formulated a couple of months ago.
The Microfinance Institutions Networks ( MFI N) currently has 42 members and also plans to create the first common database of micro finance clients. MFIN has already begun recording of client data of the top 10 MFIs in India and this is expected to be over by August 2010.The data from other microfinance companies will be recorded by end of September 2010. However, the same may be available to the public only by next quarter, said Mr Vijay Mahajan, the chairman and president, MFIN in a press release to the media.
MFIN also plans to set up seven task forces across the country to monitor MFIs and code of conduct issues that may arise. MFIN has tied up with mftransparency.org, a global NGO which will help in promoting transparency in interest rates charged from clients among MFI’s in India.