Micro Financial Sector (Development and Regulation) Bill, 2011

The Union Cabinet cleared the Micro Financial Sector (Development and Regulation) Bill, 2011, which will bring the microfinance industry under the regulatory ambit of RBI.
As per the Bill all microfinance institution (MFIs) will now have to be registered with the RBI, which will decide the interest rate that MFIs can charge. Also it would be mandatory for micro finance institutions (MFI) to be registered with the Reserve Bank and have a minimum net-owned funds of Rs 5 lakh. A Micro-Finance Development Council will be set up to advise the government on formulation of policies, schemes and other measures required in the interest of orderly growth and development of the sector with a view to promote financial inclusion. The bill has gone soft on the issue of interest rates charged by the MFIs though the MFI sceptics were expecting the capping of the rates.

The Bill will be now sent to Parliament for consideration.

Why a need for this Bill?
The Bill was drafted in the backdrop of issues faced by the microfinance borrowers in Andhra Pradesh. Micro-lenders have been accused of aggressive lending and recovery practices and high interest rates, which attracted calls for regulation.

What is Microfinance?
Micro finance services” means one or more of the following financial services involving small

Amounts to individuals or groups:
Providing micro credit;
Collection of thrift;
Remittance of funds;
Providing pension or insurance services;
Any other services as may be specified.

Source : gktoday.in

Comments

Janani Shishu Suraksha Karyakram

FEATURE H&FW B. Narzary * Reducing the maternal and infant mortality rate is the key goal feature of the Reproductive and Child Health Programme under the National Rural Health Mission. Several initiatives have been launched by the Ministry of Health & Family Welfare under the Mission including Janani Suraksha Yojana , a key intervention that has resulted in phenomenal growth in institutional deliveries with more than one crore women beneficiaries annually. JSY was launched to promote institutional deliveries so that skilled attendance at birth is made available and mothers and new born babies can be saved from pregnancy related complications and deaths.

Folk Dances of India

India is a land of diverse cultures and traditions. Each region of the country has a unique culture, which is also prominently visible in its various art forms. Almost all the regions of the country have their specific folk music and dance, which proves to be a wonderful way of expression of their community and its traditions. Though these folk dances are not as complex as the classical dance forms, they are very beautiful, because of the essence of rawness in them. Be it the Bihu of Assam, Dol-Cholom of Manipur, Hikal of Himachal Pradesh or Chhau of Bihar, each of the Indian folk dance forms comes across as a reflection of the deep sited beliefs and traditions of a particular culture. The folk dances of any community are performed on almost every special occasion and festival, to express elation and joy. These dances are also considered to be auspicious by many of the tribal communities in the country. Many folk dances are dedicated to the presiding deity of the specific commu

Civil Services' Surgicals

Search This Blog