Regulations for micro-finance companies soonBy IANS
Thursday, October 14, 2010
CHENNAI - The government is working on regulations for micro-finance institutions and consultations are on with the stakeholders, a senior finance ministry official said Thursday.
“Regulation for financial institutions is in the offing. We are consulting with the stakeholders and later it will be taken to the cabinet before it is taken to parliament,” Financial Services Secretary R. Gopalan said.
He denied any plans of the government to offer any interest subvention to banks so that they can lend at a cheaper rate compared to micro-finance institutions.
Gopalan said that the Credit Rating and Information Services of India Ltd (CRISIL) is in the process of developing an index to analyse the performance of banks in financial inclusion.
Citing the five crore “no frills” accounts in banks, Gopalan said the index developed by CRISIL will look at the nature of operations of these accounts and a banks performance will be measured according to the index.
On the setting of credit guarantee company to protect banks against default of education loans, he said the government was looking at various options.