Implications of Micro Finance Institution bill - 2011 on Micro finance institutes from their perspective

Abstract

Our learning through this CCS project is that we have clear understanding of how microfinance can help reduce the poverty by providing financial assistance to the people who are denied from main stream banking and financial institutes. We also have learned that how can greed from MFIs can lead to the untimely death of many borrowers due to high interest rate and bad recovery policies of MFIs. We have learnt that how a pro-poor initiatives like microfinance can turn to be a curse to the poor due to lack of proper regulation from Government, in this case RBI. Of late the RBI has taken a positive initiate of regulating MFIs so that the fruits of the pro-poor initiates like micro nance can be reached to the intended.