India becomes member of CGAP

HYDERABAD: India has become a member of Consultative Group to Assist the Poor ( CGAP), an international apex body for microfinance.

Managing director of Basix Microfinance and president of Microfinance Institutions Network ( MFIN) Vijay Mahajan told this to reporters here today.

"India has been admitted as a member of CGAP two days ago. The implication is that for the first time, a developing country has joined CGAP. Secondly, India will get a place in the world table on the issue of financial inclusion. G20, in their economic agenda, made financial inclusion one of the topics. CGAp is a secretariat for that," Mahajan said.

CGAP is an independent policy and research center dedicated to advancing financial access for the world's poor. It is supported by over 30 development agencies and private foundations, who share a common mission to alleviate poverty.

Housed at the World Bank, CGAP provides market intelligence, promotes standards, develops innovative solutions and offers advisory services to governments, financial service providers, donors, and investors.

India has also become a donor country after the Prime Minister Manmohan Singh's announcement of $6 billion package to Africa, Mahajan added.

In India, the microfinance sector is reeling under severe cash crunch following the introduction of AP Microfinance Act in 2010 that curtailed activities of MFIs in Andhra Pradesh.

AP accounted for nearly 30 per cent of the total microfinance business, which was pegged at Rs 30,000 crore in the country in 2010.