A group of lenders headed by the Small Industries Development Bank of India (SIDBI), a state-owned bank, have made it compulsory for microfinance institutions (MFIs) in the country to undergo third-party assessments of their codes of conduct in order to receive loans.
Search Results for: Microfinance Institutions Bill India
MICROCAPITAL BRIEF: After Reserve Bank of India Caps Microfinance Institution Interest Rates at 26%, Investors Eye Non-Banking Financial Companies
Microfinance investors reportedly are seeking to invest in India’s non-banking financial companies (NBFCs) after the Reserve Bank of India (RBI) established a new regulation framework in 2011 that included an interest rate cap of 26 percent on loans disbursed by microfinance institutions (MFIs).
MICROCAPITAL BRIEF: Reserve Bank of India Projected to Issue Banking Licenses to L&T Finance Holding, Shriram Group, Mahindra & Mahindra Financial Services
Antique Stock Broking Ltd., an India-based financial services conglomerate, reportedly has projected that L&T Finance Holding, Shriram Group and Mahindra & Mahindra Financial Services are the three non-banking financial companies (NBFCs) most likely to receive banking licenses shortly from the Reserve Bank of India (RBI).
MICROCAPITAL BRIEF: Reserve Bank of India: Islamic Banking Not Workable Under Current Law, Financial Literacy Needs Boost
At a recent event in Kochi, India, Reserve Bank of India (RBI) Governor Duvvuri Subbarao reportedly ruled out the implementation of Islamic banking in the country at this time due to legal issues that would require a new law in order to allow the practice.
MICROFINANCE PUBLICATION ROUND-UP: Trends in Cross-Border Funding for Microfinance; Microinsurance Among Microcredit Groups in Tanzania; Asian Development Bank Interventions Fail to Reach Enough Poor People
“Current Trends in Cross-Border Funding for Microfinance;” by Estelle Lahaye and Ralitsa Rizvanolli; published by CGAP (Consultative Group to Assist the Poor); December 2012; 4 pages; available at: http://www.cgap.org/sites/default/files/Brief-Current-Trends-in-Cross-Border-Funding-for-Microfinance-Nov-2012.pdf
MICROCAPITAL BRIEF: Entrepreneurs Amit Patni, Arihant Patni Acquire Stake in Grameen Capital India
Grameen Capital India (GCI), an investor in microfinance institutions and other social enterprises, recently announced the acquisition of a 43 percent stake in the company by Indian technology entrepreneurs Amit and Arihant Patni.
MICROCAPITAL BRIEF: Te Creemos of Mexico First Microfinance Institution (MFI) in Mexico to Issue MasterCards, Plans to Reach 250,000 New Customers Over 3 Years
MasterCard Inc, a US-based payments and technology company, has established a new business model to reach small and medium-sized enterprises (SMEs) by enabling regulated microfinance institutions (MFIs) in Mexico to become card issuers.
MICROCAPITAL BRIEF: National Bank for Agriculture and Rural Development (NABARD): Non-Performing Assets (NPAs) Owed by Self-Help Groups (SHGs) in India Rise 50% to $400m
The National Bank for Agriculture and Rural Development (NABARD), an institution of the Indian government, released a report entitled “Status of Microfinance in India, 2011-12” that indicates that non-performing assets (NPAs) owed by self-help groups (SHGs) in the country were increasing and that lenders were cutting back their exposure to SHGs as a result. SHGs are village based financial intermediaries that facilitate microcredit and saving.
MICROCAPITAL BRIEF: SKS Microfinance of India Announces $36m Securitization Under Amended Reserve Bank of India Guidelines
SKS Microfinance, an Indian microfinance institution (MFI), reportedly has announced its first microfinance securitization of INR 2 billion (USD 36.4 million) since the Reserve Bank of India (RBI), the country’s central banking authority, revised the guidelines for securitizations issued by non-banking finance companies (NBFCs) in August 2012.
MICROCAPITAL BRIEF: Reserve Bank of India Asks Rural Banks to Open 25 Percent of New Branches in Unbanked Areas
The Reserve Bank of India (RBI), the country’s financial regulatory authority, recently tasked regional rural banks (RRBs) to ensure that at least one-quarter of their proposed branches are sited in unbanked parts of the country.
MICROCAPITAL BRIEF: Private Equity Firms Investing in Indian Microfinance Institutions (MFIs) After Two-Year Hiatus
Private equity firms are beginning to invest in Indian microfinance institutions (MFIs) that offer products such as insurance, pension plans and chit funds in order to diversify their portfolios. It is reported that private equity firms have invested INR 7.5 billion (USD 138 million) in Indian MFIs this year, as compared to INR 2.5 billion (USD 46 million) invested in 2011.
MICROCAPITAL BRIEF: International Finance Corporation (IFC) Commits Technical Assistance To Indian Credit Bureau, High Mark
The International Finance Corporation (IFC), the private investment arm of the World Bank Group, recently agreed to provide technical assistance to High Mark, an Indian credit bureau, in an effort to encourage microfinance lenders in India to use credit bureaus in assessing the repayment capacity of borrowers.
MICROCAPITAL BRIEF: Microfinance Institutions (MFIs) Share, Asmitha of India, Again Looking to Merge
Share Microfin Limited and Asmitha Microfin Limited, two microfinance institutions (MFIs) based in Hyderabad, India, reportedly have rekindled efforts to execute a merger.
MICROCAPITAL BRIEF: Equitas of India Receives $9.3m from MicroVentures, India Financial Inclusion Funds
Equitas Holdings, a microfinance institution (MFI) based in Chennai, India, raised INR 500 million (USD 9.26 million) from MicroVentures India and India Financial Inclusion Fund, two funds dedicated to supporting the Indian microfinance industry.
MICROCAPITAL BRIEF: Western Union, ICICI Bank, MasterCard Unveil Prepaid Card in India
Western Union, a US-based financial services and communications company; ICICI Bank, a commercial bank in India;and Mastercard, a global payments and technology company recently launched the Western Union- ICICI Bank Prepaid Card in India.
MICROFINANCE PUBLICATION ROUND-UP: Analysis of Microfinance Investment Vehicles; Female Microfinance Clients in Pakistan; Life Microinsurance in the Philippines
“The State of Microfinance Investment 2012: MicroRate’s 7th Annual Survey and Analysis of MIVs;” published by MicroRate; October 2012; 17 pages; available at: http://www.microrate.com/downloads/78
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Convenes Financial Inclusion Advisory Committee
The Reserve Bank of India, the country’s financial regulatory authority, recently announced the inauguration of a financial inclusion advisory committee (FIAC) under the chairmanship of the bank’s Deputy Governor K.C. Chakrabarty.
MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Invest $18m in Equitas Microfinance India, Private Equity Funds Looking to Invest in Indian Microfinance Institutions
The International Finance Corporation, a member of the World Bank Group, reportedly has proposed investing INR 1 billion (USD 18.9 million) in Equitas Microfinance India, an Indian microfinance institution (MFI).