Serve Rural Areas or Lose License, Central Bank of Nepal Governor Tells Microfinance Institutions

Monday, May 16, 2016

Nepal Rastra Bank (NRB) Governor Chiranjibi Nepal has warned that the central bank may scrap the license of microfinance institutions who fail to reach rural areas of the country.

Addressing the inaugural session of a two-day National Microfinance Members’ Summit that kicked off in Kathmandu on Sunday, Governor Nepal urged the microfinance institutions to focus their services in villages.

“There are people in the villages willing to embrace entrepreneurship. They have the capacity to run enterprises. You should finance them. You should go to the villages,” Nepal added.

The statement of the central bank governor has come in the wake of growing complaints that the microfinance institutions, which were licensed to provide their services in certain areas of the country, are centered in convenient and urban areas.

Source: My Republica (link opens in a new window)

financial inclusion, lending, microfinance, rural development