The Hindu Business Line : `Sustainable micro financing needs governance, regulation'

Majority of stakeholders at a Round Table meet on micro finance organised by the Indian Institute of Economics (IIE) here have favoured the adoption of governance and regulation for an orderly, healthy and sustainable growth of micro finance sector.

Expressing serious concern over the exorbitant interest rates, they favoured evolving methods to bring down the cost of funds of micro-finance institutions (MFIs) through funding, subsidies or savings products so that the needy sections of the society had access to low cost finance.

The long-term future of the micro-finance sector depended on (MFIs) being able to achieve operational, financial and institutional sustainability, according to the IIE Director, Dr B. Yerram Raju.

Addressing the stakeholders at the Administrative Staff College of India (ASCI), the Reserve Bank of India General Manager, Mr P. Vijaya Kumar, stressed the need for MFIs to rope in domain experts, professionals and independent directors on their boards in the larger interest of all stakeholders.

The Chief Executive of Basix, Mr N.V. Ramana, favoured MFIs introducing multiple services aimed at improving the livelihoods of borrowers in the form of offering business development, marketing and risk mitigation support services. Prof H. Lajipathi Rai, Head of Centre for Infrastructure and Investment at Dr Marri Chenna Reddy Human Resources Development Institute, stressed the need to evolve socially acceptable recovery methods and strongly criticised the coercive recovery methods.

More Stories on : Credit Market | Rural Development

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Impressive command over economic complexities

Code of conduct for insurance agents on anvil

Case for deregulating S/B interest rates

Andhra Bank firms up Gulf expansion plan

Rs 175.45-cr aid for 75 projects in AP

Bonds bearish; PSBs keen to trim tenure

Time limit extended for investments in bonds

`Sustainable micro financing needs governance, regulation'

SBH unveils general credit card