The plan has received positive feelers from Canara Bank, which, along with others, will together hold 49 per cent. The MFI will be set up with a capital of Rs 100 crore (Rs 1 billion).
'We need to be far more careful given the fact that while this is group lending, it's essentially unsecured.'
Gold prices hit record high in the third week of March as fears of bank collapses and high inflation led investors to the traditional safe haven. Gold prices are often inversely correlated to dollar strength because the international price is dollar-denominated. The Federal Reserve's (Fed's) stance indicates that the dollar may appreciate further since it is prepared to keep pushing up policy rates. But demand for gold is also up - the World Gold Council claims central banks are buying in addition to private demand.
The Micro Finance Institutions (Development and Regulation) Bill, 2012, is currently being scrutinised by a Parliamentary Standing Committee.
Pranab Mukherjee said the government proposes to move various legislative Bills related to financial sector reforms.
As bank loans to MFIs are mostly unsecured, the Indian Banks Association had requested RBI in December to relax its restructuring guidelines for the MFI sector.
There are allegations that MFIs are charging exorbitant interest rates and using strong-arm tactics to recover the loans.
Credit Information Bureau India Limited has entered into an agreement with 31 leading micro finance institutions to set up a credit information bureau for MFIs.
MUDRA Bank will have a corpus of Rs 20,000 crore.
The finance ministry is not in favour of revising norms for external commercial borrowing or hiking the limits beyond $500 million in the near future, but will allow micro-finance institutions to tap overseas markets to raise up to $5 million.
Andhra Pradesh Governor ESL Narasimhan met Congress president Sonia Gandhi on Friday evening to reportedly discuss the administrative and political situation in the state.The two discussed the expansion of the state cabinet, the ordinance on micro-finance institutions, trimming the administration and preparing for political developments after the Justice Sri Krishna Committee submits its report on the creation of Telangana state.
Investors are shying away from securitised loans of micro-finance institutions (MFIs), as the ordinance issued by the Andhra Pradesh government has slowed recoveries, creating uncertainty around the underlying portfolio.
You can't ask a current borrower to finance your growth, says RBI memeber Yezdi H Malegam.
The year 2010 was a tumultuous one for micro-finance institutions (MFIs) in India.
At a time when the Micro Finance Institutions (MFIs) have drawn flak due to steep interest rates charged by them, the Reserve Bank of India (RBI) Deputy Governor K C Chakrabarty has categorically stated that such institutions cannot play any role in financial inclusion.
The loan by the banks to MFIs for on-lending to small borrowers will fall under 'priority sector' category if the RBI guidelines are met.
"Bank loans to all MFIs, including NBFCs working as MFIs on or after April 1, 2011, will be eligible for classification as priority sector loans if, and only if, they conform to the regulations formulated by the Reserve Bank," RBI Governor D Subbarao said in the 'Monetary Policy Statement for 2011-12'.
MFI tactics have even prompted Andhra Pradesh Cabinet to approve an ordinance to rein them in.
Micro-finance institutions (MFIs) are planning to take legal action against YES Bank's move to recall a part of its loans to them.
The government is set to ask PSBs to expeditiously introduce repo-rate linked products "to step up affordable credit".
The government on Tuesday said it is not in favour of regulating interest rates charged by micro-finance institutions but emphasised that there should be transparency in amount they charge from the borrowers.
MFIs were allegedly charging interest rates of over 30 per cent.
Gurumani have been roundly criticised for booking eye-popping profits on share sales of exercised options.
TDP President N Chandrababu Naidu on Tuesday asked women not to repay loans they secured from Micro-Finance Institutions (MFIs) till the government brought in a regulator to keep a tab on the financing business.
In a bid to stop stop micro-finance institutions (MFIs) from charging usurious rate of interest, the Finance Ministry has asked state-owned banks to ensure that such institutions do not charge a loan rate of above 24 per cent.
A week after SKS Microfinance was listed on BSE, many of the employees are finding themselves in the league of millionaires.
Bandhan has got fresh equity infusion of Rs 1,020 crore.
In an effort to boost commodity trading in the country, the much-awaited amendments to the Forward Contract and Regulations Act of 1952 will happen during the Budget session of the Parliament.
Forbes magazine has honoured Bandhan of being the world's largest micro finance institute.
The KAS Foundation is touching the lives of 700,000 people.
'This micro-finance sector has seen a tremendous upsurge in the recent time. There is a huge potential in this domain'.
Union Bank of India will bring banking services to the doorsteps of over 2.5 lakh hawkers in Mumbai by partnering with their association and FINO Fintec, a micro finance institution.
Citigroup India on Thursday announced a $3.5 million grant to the Indian School of Micro Finance to be set up in Ahmedabad.
The government and the Insurance Regulatory Development Authority mooted a 'micro-insurance' scheme and asked insurers to collaborate with non-governmental organisations.
Finance Minister P Chidambaram on Thursday ruled out changes in tax laws for micro-finance institutions and allowing foreign equity in the sector, but kept options open for a separate fund for them.
While banks are not as exposed as the corporate sector during the initial stage of the pandemic, the strain on lenders could ultimately be profound. Banks face a second-order hit compared with the corporate and household sectors.
During a three-hour long virtual meeting with CEOs of large public and private sector banks along with heads of NBFCs, the prime minister assured them that the government is ready to take all steps to support the financial sector.
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