By R.Kanagavel, General Manager, Virutcham Microfinance
Given below are the suggestions and comments, given by the executive committee of directors at Virutcham Microfinance on the Malegam Committee Report.
- The entry point qualification that all NBFC-MFIs should have a minimum Net Worth of Rs 15 Crores should be removed and the existing net worth requirement of Rs.2 crores should be continued.
- The recommendation that loan should be given to a borrower whose annual income does not exceed Rs.50,000/- should be removed and the existing eligibility criteria should be continued.
- Similarly the ceiling on maximum loan that can be given to a SHG member recommended by the committee as Rs.25,000/- should not be accepted. Instead the existing ceiling of Rs.50,000/- should continue.
- The weekly collection should be discouraged and only fortnightly or monthly collection should be encouraged.
- The Capital Adequacy Ratio to be maintained should be fixed as 12%.
- All NGO-MFIs should be registered with NABARD invariably without any exemption.
For Complete Summary of Reactions on Malegam Committee Report – Click here.