The art of killing micro financial institutions

Abstract

The MFIs cater to the ultra small borrower — the cobbler, the vegetable vendor, the tailor — and government should not meddle with the business model. A colleague at a well known US university asked me once about areas which are not regulated by the government in India. I thought about it and the only answer I could give was pertaining to music /dance performances and other art forms as long as one does not want government awards. Government does not fix the duration of an aalaapana — so far. If any enterprise is doing well and well received by users/customers/borrowers then the government with a perverse intent evolves regulations to destroy that activity. It cannot simply accept success of the enterprise and the benefits that the borrowers/clients derive from it. Micro Finance (MF) is one such area. Read more at: https://www.dnaindia.com/analysis/column-the-art-of-killing-micro-financial-institutions-1444392