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Majority of Indian MFIs May Have to Shut Shop
Mumbai: At least 80% of microfinance institutions (MFIs) may have to shut down in the next two-three years because of tough new regulatory requirements laid down by the Reserve Bank of India (RBI) and a shortage of funds, industry executives warn. For MFIs categorized as non-banking financial companies (NBFCs), which are run as for-profit organizations, the threat comes from RBI regulations pertaining to minimum funds, loan provisions and capital adequacy. The reluctance of commercial b...
- Region
- South Asia
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?More Poor People Own Mobile Phones, But Productive Use Still a Far Cry’
NEW DELHI, DEC. 19: Hamid owns a grocery shack in a village. He travels about 80 km once in 15 days to get stuff to stock up his store. Every year his village gets flooded during the rains, leaving him with no earnings during that time. But, one, small device has changed his life. After he got a mobile phone, Hamid does not need to travel 80 km and lug stuff for his store. He simply calls, places the order and gets stuff delivered. It costs him a bit for the cartage, but the...
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- South Asia
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Could Thinking Small Be The Next Big Thing in Agricultural Development?
In India, every street corner has small shops displaying colourful strips of 1 rupee (about 1p) shampoo sachets, or stacks of mini soap bars. Creative marketing has even brought these sachets to isolated villages, draped on the back of camels. Hindustan Unilever was behind this "adapting to the poor" approach. Realising their soaps and shampoos were too expensive for poor people, they repackaged them into small, affordable sachets. These were initially sold door-to-door by "shakti ladie...
- Region
- South Asia
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A New Beginning for Microfinance in India?
A new report on India’s microfinance industry says that the troubles in Andhra Pradesh have been "one of the best things that could have happened to the sector." Really? Looking back at a year of microfinance in India, words like "crisis," "collapse" and "catastrophe" seem more fitting - and it all started in Andhra Pradesh, a state that used to be India’s microfinance hub. The decision by the local government to clamp down on collection practices last year spiraled into a crisi...
- Region
- South Asia
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Waterlife Gets $4.2 Million Investment from Matrix Partners India
Waterlife India Private Ltd (Waterlife) has announced that it has received Rs 22 crore investment from Matrix Partners India. The company provides quality potable water solutions. The Hyderabad-based company has installed safe water systems in more than 1,500 villages and urban areas covering more than a million people in a sustainable manner, a release said. Intellecap was the sole advisor for this transaction. The capital infusion would help Waterlife to expand. Having sta...
- Region
- South Asia
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IFC Works with Intellecash
IFC, a member of the World Bank Group, is partnering with IntelleCash to help start-up microfinance institutions in low-income states of India respond better to the needs of their customers, promoting responsible microfinance while providing better client protection. IntelleCash is the first initiative in India to apply the principles of business franchising to the microfinance sector. Through the IntelleCash Network Program, it helps microfinance institutions get started and...
- Region
- South Asia
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Microfinance Industry Going All Out to Regain Lost Glory with Women Power
HYDERABAD/MUMBAI: Beleaguered microfinance industry is turning to women power to lift it out of the depths. The fairer sex is increasingly occupying the rank and file of recovery agents of lenders to the poor as the industry attempts to restore its past glory after charges of molestation and browbeating made it an unwanted child. "We will push the MFIs to have more women on rolls once the industry, currently in fire...
- Region
- South Asia
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Citi Micro Entrepreneur Awards 2011 Honors Individual Enterprise
The Citi Micro Entrepreneur Awards 2011 recognized nine micro entrepreneurs and a community owned enterprise at a ceremony presided over by Dr. K. C. Chakrabarty, Deputy Governor, Reserve Bank of India. The Citi Micro Entrepreneur Awards 2011 received over 800 applications from 77 nominating organizations. There were 74 % women nominations and four new categories introduced - youth, green, innovative and community owned enterprise. The 2011 awards took into account geographical, socio-e...
- Region
- South Asia
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