One of the fears of the proposed MFI bill is that it will override the powers of the state governments, since the bill proposes RBI to be the regulator of MFIs. Earlier provision under Malegam Committee recommendations was that only NBFCs registered as MFIs would come under the jurisdiction of RBI and others smaller plays would continue to be the part of state govt’s jurisdiction. For example, last year Andhra Pradesh (hub of MFI activities with almost 1/4th of the MFI industry concentrated in the state) came out with its own ordinance capping various activities of MFIs in the backdrop of a number of suicides in the state.
However RBI has tried to allay such fears and has stated that it has no intention of overriding powers of the elected state govts. It needs to be seen how RBI balances powers given to it sunder the Bill and the policies as adopted by the state govt.
____________________________________
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in
Hey there, You’ve done a great job. I’ll definitely digg it and personally recommend to my friends. I am sure they’ll be benefited from this web site.
Do you have twitter account sir ? So i can follow your blog
Unquestionably believe that which you stated. Your favorite justification seemed to be on the net the easiest thing to be aware of. I say to you, I definitely get annoyed while people think about worries that they plainly don’t know about. You managed to hit the nail upon the top and also defined out the whole thing without having side effect , people could take a signal. Will probably be back to get more. Thanks
Fine tips! I have been searching for things such as this for a time currently. With thanks!