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Micro-finance Institutions (MFIs) should be given special banking licences to accept small deposits, according to Nobel Laureate Muhammad Yunus.
Speaking to newspersons on the sidelines of a global conference on ageing here on Wednesday, the pioneer of micro-credit in Bangladesh and founder of Grameen Bank said deposits should be used only for micro-lending purposes. “On mobilising funds, tapping capital markets might not be good for micro-lenders as it would put pressure on them to show returns to the investors,” he said.
When asked on the recent sanction of a banking licence to Bandhan, a Kolkata-based MFI, he said it was good, but a regular banking licence should be differentiated from an exclusive licence for MFIs to collect deposits.
He said MFIs in India are doing well, but social business without profiteering, should be encouraged. The present regulatory framework put in place by RBI for NBFC-MFIs was good, he added. On Grameen Bank’s plans for India, Yunus said it was ready to help on invitation from Indian players.
“In Kerala, we are working together with Indian players. But why should we come here? There are enough people,” Yunus said.
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