Plan panel for National Policy on Micro-finance
The Planning Commission has suggested the centre to come out with a national policy on micro-finance with a view to financially empower the BPL families and reduce overall poverty in the country.
By PTI |
NEW DELHI: The Planning Commission has suggested the centre to come out with a national policy on micro-finance with a view to financially empower the BPL families and reduce overall poverty in the country.
In a report on strengthening the micro-finance sector, the plan panel pointed out that there is an urgent need for
such a policy wherein efforts by various agencies and service providers are in unison and help evolve a coordinated strategy for a faster and smoother growth of the sector.
At present, both the government and the private agencies involved in micro-finance have devised their own individual
strategies in furtherance of their goals. the absence of a comprehensive national level policy has hindered the orderly
growth of the sector, the report said.
As such the government should prepare a model bill on money lending and direct state governments to enact similar
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legislations to facilitate the expansion of micro-finance. the centre could take inputs from the model bill prepared by a technical group for review of legislations on money lending, which was constituted by the reserve bank.The bill should look at allowing micro-finance institutions (mfis) to mobilise savings from their members
under a regulatory framework monitored by nabard.
Micro-finance is generally provided in the form of loans by ngos, self-help groups and other entities to those who do
not have direct access to banks.
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