The government of the Indian State of Andhra Pradesh reportedly is set to alter the Andhra Pradesh Microfinance Institutions (Regulation of Moneylending) Act, which was enacted December 2010 in response to complaints of high interest rates and coercive loan recovery, by replacing the term “self-help group (SHG) women” with “below poverty line (BPL) households” [1] [2]. According to unspecified sources at the Andhra Pradesh Chief Minister’s Office, the purpose of the replacement is “to ensure that MFIs adhere to the existing stringent rules” by “bringing all kinds of MFI loan products, existing and future, under the purview of the Act [1].”
By: Alexandra Pattee, Research Associate
Sources and Resources:
[1]The Times of India, February 26, 2011, “Govt to remove ‘hurdles’ for MFIs”http://timesofindia.indiatimes.com/city/hyderabad/Govt-to-remove-hurdles-for-MFIs/articleshow/7576337.cms
[2] MicroCapital.org Article, February 22, 2011, “As Commercial Banks Remain Wary, Indian Microfinance Institutions (MFIs) Look Beyond Andhra Pradesh for New Markets”https://www.microcapital.org/microcapital-brief-as-commercial-banks-remain-wary-indian-microfinance-institutions-mfis-look-beyond-andhra-pradesh-for-new-markets/
MicroCapital.org Article, November 15, 2010: “India’s Microfinance Industry on Brink of ‘Collapse’ Due to Credit Freeze in State of Andhra Pradesh”https://www.microcapital.org/microcapital-brief-indias-microfinance-industry-on-brink-of-collapse-due-to-credit-freeze-in-state-of-andhra-pradesh/
MicroCapital.org Article, February 8, 2011, “Government of India’s Andhra Pradesh Considers Requiring Microfinance Institutions (MFIs) to Compensate Families of Suicide Victims”https://www.microcapital.org/microcapital-brief-government-of-indias-andhra-pradesh-considers-requiring-microfinance-institutions-mfis-to-compensate-families-of-suicide-victims/
MicroCapital.org Article, January 14, 2011, “Reserve Bank of India (RBI) Indicates No Interest in Rate Cap, States It Has No Solution For Microfinance Institutions (MFIs) Whose Clients Won’t Repay Their Loans”https://www.microcapital.org/microcapital-brief-reserve-bank-of-india-rbi-indicates-no-interest-in-rate-cap-states-it-has-no-solution-for-microfinance-institutions-mfis-whose-clients-won?t-repay-their-loans/
MicroCapital.org Article, November 16, 2010, “Under Pressure from State Government of Andhra Pradesh, Indian Microfinance Institutions Agree to Cap Interest Rates at 24%”https://www.microcapital.org/microcapital-brief-under-pressure-from-state-government-of-andhra-pradesh-indian-microfinance-institutions-agree-to-cap-interest-rates-at-24/
MicroCapital.org Article, December 17, 2010, “Local Government in Indian State of Andhra Pradesh Considers Additional Microfinance Regulation, Requires Disclosure of Operational Procedures”https://www.microcapital.org/microcapital-brief-local-government-in-indian-state-of-andhra-pradesh-considers-additional-microfinance-regulation-requires-disclosure-of-operational-procedures/
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