Existing legal and regulatory framework for the microfinance institutions in India
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Existing legal and regulatory framework for the microfinance institutions in India challenges and implications by

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Published by Sa-Dhan in New Delhi .
Written in English


  • Microfinance -- Law and legislation -- India

Book details:

Edition Notes

Statement[compiled by] Sa-Dhan Microfinance Resource Centre.
ContributionsSa-Dhan Association., Sa-Dhan Microfinance Resource Centre., Micro-Credit Ratings International Limited.
LC ClassificationsKNS891.5 .E+
The Physical Object
Paginationvi, 107 p. ;
Number of Pages107
ID Numbers
Open LibraryOL16386600M
LC Control Number2007394574

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  Micro finance in India: legal and regulatory framework 1. Microfinance in India: Legal & Regulatory Framework 2. Clarity of ownership Initial capital requirement and capital adequacy Ability to mobilise deposits Ability to raise equity Ability to raise grants Ability to raise funds from banks Regulatory authority Tax implications 3.   LEGAL & REGULATORY FRAMEWORK FOR MICROFINANCE IN INDIA Microfinance Institutions, as the name suggests, it plans to cater to the financial need of the smallest strata (low-income group) of the society. Microfinance institutions operating under other legal structures face minimal regulatory requirements, aside from registration, though recent drafts of the pending Micro Finance Institutions (Development and Regulations) Bill , has put all microfinance institutions File Size: KB. The Indian microfinance sector witnessed tremendous growth over the last five years, during which institutions were subject to little regulation. Some microfinance institutions were subject to prudential requirements; however no regulation addressed lending practices, pricing, or operations.

The present paper discusses conceptual framework of a microfinance institution in India. The successes and failures of various microfinance institutions around the world have been evaluated and lessons learnt have been incorporated in a model microfinance institutional mechanism for India.   The legal framework for MFIs in India with reference to its registration and other parameters can be broadly narrated as under: For Societies – Registration for this is a very easy process with no minimum capital requirement. Further, they are not allowed for deposit mobilization/ collection from the public. Impact of Policies and Regulations on the Micro finance Sector MicroSave – Market-led solutions for financial services Executive Summary The Andhra Pradesh micro finance crisis and the subsequent regulatory regime had a significant impact on the micro finance institutions and . (1) clarifying and unifying the legal and regulatory framework for rural finance/microfinance institutions; (2) assessing the capacity of existing institutions which provide financial services to the poor; and (3) assisting the government in developing a vision and strategy for providing sustainable financial services to the poor.

Some Legal and Regulatory Receivables, also offers a supportive legal framework for • As microfinance institutions have begun offering a wider variety of financial services, the meaning of the term “microfinance” evolved to encompass all financial tools designed for poor. The table below provides country examples for regulatory responses identified in the Briefing Microfinance and COVID Principles for Regulatory measures and choice of countries are indicative only, updated on available information as of June , with select updates through July Part II of the paper assesses the limitations of the existing regulatory framework for micro- finance institutions (“MFIs”). The section traces the significant pointers in the regulatory mechanism, parameters that assess them and the role of allowing profit in MFIs. microfinance objectives of financial inclusion and poverty alleviation. The implementation of the Microfinance Policy over the past six (6) years and the experience gained, underscore the need for the review of the existing Regulatory and Supervisory Guidelines.