‘RBI report on regulating MFIs awaited’ | business | Hindustan Times
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‘RBI report on regulating MFIs awaited’

With microfinance institutions drawing flak for their strong arm tactics, the government expects to arrive at a consensus soon on selecting a regulator for these institutions after a Reserve Bank of India appointed panel submits its report next month, finance minister Pranab Mukherjee said.

business Updated: Nov 19, 2010 22:23 IST
HT Correspondent

With microfinance institutions (MFIs) drawing flak for their strong arm tactics, the government expects to arrive at a consensus soon on selecting a regulator for these institutions after a Reserve Bank of India (RBI)-appointed panel submits its report next month, finance minister Pranab Mukherjee said.

"I am afraid that the views expressed by a large number of people are genuine and I am equally concerned," Mukherjee said at the HT Leadership Summit on Friday.

Last month, the Andhra Pradesh government promulgated an ordinance aimed at regulating microfinance institutions (MFIs).

"I have analysed the Andhra order. The RBI committee’s report will be submitted in December," he said.
"After obtaining these views we will take appropriate measures," Mukherjee said.

The government and the MFI sector players are in talks to find out a common ground for having a regulator. MFIs, which lend money to those in the unorganised sector, are not regulated by any single watchdog.

The National Bank for Agriculture and Rural Development is being considered as an empowered regulator for MFIs.