Professional Documents
Culture Documents
ii.
iii.
Provide other financial services such as pensions, subsidies, remittances and fund
transfer facilities
b) To create and promote a fair financial market for low income public with appropriate
consumer protection and fair market practices along with appropriate prudential standards
for a safe and sound market.
2. Structure of the Microfinance Institutions (MFIs)
MFIs Sector consists of a large number of institutions which can broadly be classified under
the following four categories based on size of operations and institutional structure.
a) Community-based institutions/organizations and persons
i.
ii.
iii.
Some no registration
iv.
ii.
Cover generally small and large foreign NGOs operating in the world or regions
iii.
iv.
No deposit-taking
ii.
iii.
Accept deposits and compulsory savings from members and lend to them
ii.
Co-operative Banks
iii.
Agrarian Banks
a) Divisional Secretaries (DS) to undertake regulation and supervision of communitybased small institutions/organizations and persons
i.
ii.
Unit to have 2-3 graduates and operate at field level through GNs and the Central
Bank to provide basic training.
iii.
MFIs to register at DS
iv.
Registration is limited to MFIs with a very small asset base capped at a prescribed
amount.
v.
MFIs to accept deposit and member shares and lend to members, all subject to
max thresholds per member
vi.
Such MFIs are not expected to grow beyond the total asset cap
vii.
viii.
ii.
iii.
No deposit-taking
iv.
ii.
iii.
Each company to have a limited branch network of 2-5 in the operating District
only
iv.
v.
ii.
iii.
iv.
g) Amend or grant exemptions from other relevant Acts appropriately to implement this
regulatory model