Sa-dhan Welcomes "The Microfinance Institutions (Development & Regulation) Bill -2011"
Sa-Dhan, the Association of Community Development Finance Institution, welcomes the Government's proposal of the microfinance institutions Bill 2011. The Bill would reinforce the sense of legitimacy of microfinance operations, besides providing clarity on regulatory jurisdiction and comfort to the bankers and lenders of microfinance institutions. The Bill reaffirms the sectors position in defini
- (1888PressRelease) July 08, 2011 - Sa-Dhan, the Association of Community Development Finance Institution, welcomes the Government's proposal of the microfinance institutions Bill 2011.
The Bill would reinforce the sense of legitimacy of microfinance operations, besides providing clarity on regulatory jurisdiction and comfort to the bankers and lenders of microfinance institutions. The Bill reaffirms the sectors position in defining Microfinance as extended arms of banks and financial institutions.
The Bill is comprehensive and provides for most requisite provisions for regulation of the microfinance sector. We specifically welcome the following provisions in the Bill:
• Inclusion of all legal forms under the proposed Act
• Provisions for composite financial services including thrift
• RBI as the sole regulator for the sector
• Developmental and advisory role of the Councils
• Ombudsman scheme for client protection and grievance redressal
• Provision for recognition to the self regulatory organizations in promotion and compliance of code of conduct by member MFIs
Sa-Dhan has been a part of the drafting committee in developing the framework of the Microfinance Institutions Bill-2011. Since the Bill is now in public domain, the association is holding wider consultations with its members spanning over NBFCs, Section-25 Companies, Cooperatives, Societies, Trusts etc to develop a consolidated response to the proposed regulatory framework. Subsequently, Sa-Dhan will engage with its membership in developing rules, regulations and compliance to the regulatory guidelines.
"It's an important step in defining the framework for microfinance services. It provides helpful measures for client protection and a direction to the microfinance industry to perform its roles with efficiency and effectiveness, said Mr Mathew Titus, Executive Director, Sa-Dhan"
Sa-Dhan is the association of community development Finance Institutions with 251 members across region, size, legal forms, models and approaches. Putting together, Sa-Dhan has a total client outreach of more than 26 million and an outstanding portfolio of Rs 22000 crore
If you would like more information on this topic or to schedule an interview with Mr Mathew Titus, Executive Director, Sa-Dhan Please contact nilesharya ( @ ) sa-dhan dot org or 01147174400
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