Industry is hopeful that the Microfinance Bill, 2012 will get Parliament’s approval during the Budget session.
Alok Prasad, chief executive officer of industry body MFIN, said this while addressing a regional convention on microfinance.
It was jointly organised by MFIN, Assocham, and Kerala Association of Microfinance Institutions (Kamfi).
“A standing committee of Parliament is reviewing the comprehensive Microfinance Institutions (Development and Regulation) Bill, 2012.
“We expect that the committee will put forward its recommendations and refer the Bill back to House. It should hopefully become the law of the land very soon,” Prasad told the gathering.
OTHER SERVICES
The Bill elaborates on the role of microfinance institutions as facilitating access to ‘credit, thrift and other microfinance services.’ These may also include micro thrift, micro insurance, micro pension and even micro remittances, Prasad said.
It also recognises the potential of microfinance to provide not just credit but other financial services to the bottom of the pyramid.
The Bill takes a holistic view and brings legal entities such as societies, companies, trusts and body corporates under purview.
It provides for creation of State microfinance councils responsible for growth and development of the sector in respective States.
The State councils report directly to the Centre. The Bill even provides for microfinance committees at the district level.
Prasad said it was only in the fitness of things that all players were being brought under Reserve Bank of India.
Prasad said a regulator should concern itself about what works best for public good.
It is but natural that a regulator finds itself at cross with the market and market players, he said citing the recent instances.
“But what is good for public interest should prevail in the end,” he said.
vinson.kurian@thehindu.co.in