The Union Cabinet of India, a decision-making body of the executive branch of the government of India, reportedly has approved a bill proposing that all microfinance institutions (MFIs) register with the Reserve Bank of India (RBI) and maintain a minimum of funds equal to INR 5 lakh (USD 9,270).
Category: Regulation
MICROCAPITAL BRIEF: Bank of Ghana (BoG) Expected to Shut Down Unlicensed Microfinance Institutions MEDLORM Microfinance Limited, African Guarantee Trust, Abbey Cash Microfinance Limited, Swift Financial Services
The Bank of Ghana (BoG), Ghana’s central bank authority, reportedly is expected to halt the operations of four unlicensed microfinance institutions (MFIs): MEDLORM Microfinance Limited, African Guarantee Trust, Abbey Cash Microfinance Limited and Swift Financial Services.
MICROCAPITAL BRIEF: Bangladesh Government to Investigate NGOs, Microcredit Entities for Money Laundering
The Bangladeshi government reportedly intends to investigate the financial transactions of nongovernment organizations (NGOs) and microcredit entities operating in the country “to unearth any kind of money laundering.”
MICROFINANCE PUBLICATION ROUND-UP: Disclosure Regimes for Responsible Financial Inclusion; The Thailand Village and Urban Revolving Fund; “Microsavings Works Much Better”
“Designing Disclosure Regimes for Responsible Financial Inclusion,” by Jennifer Chien; published by CGAP (Consultative Group to Assist the Poor); March 2012; 23 pages; available at:
http://www.cgap.org/gm/document-1.9.57109/FN_78.pdf
MICROCAPITAL BRIEF: RBI Wants Microfinance Institution Deposit-Taking Cut From Micro Financial Sector Bill
Deputy Governor Anand Sinha of the Reserve Bank of India (RBI), India’s central banking authority, reportedly announced in a budget speech that RBI does not support allowing microfinance institutions (MFIs) to take deposits from clients.
MICROCAPITAL BRIEF: National Insurance Commission (NIC) of Ghana Anticipates New Microinsurance Law
Ghana’s National Insurance Commission (NIC), the regulatory authority for the country’s insurance industry, reportedly has announced that a new national insurance law incorporating microinsurance will be passed sometime during 2012.
MICROFINANCE EVENT: CGAP (Consultative Group to Assist the Poor) Hosts Virtual Conference “Financial Inclusion: What Really Works for Clients”, April 25 and 26, 2012
Event Name: Financial Inclusion: What Really Works for Clients
Event Date: April 25, 2012, 10:00 GMT (in French) and 4:30 GMT (in English); April 26, 2012, 4:00 GMT (in English) and 10:00 GMT (in English)
Event Location: Online
MICROCAPITAL BRIEF: Selangor State Government of Malaysia Launches “WALA” Microcredit Scheme for Rural Women with $1.6m
The Selangor state government of Malaysia reportedly has allocated MYR 5 million (USD 1.63 million) for a microcredit scheme for rural women – also known as WALA – that is intended to supplement their household incomes.
MICROCAPITAL BRIEF: Financial Sector Deepening: Central Bank of Kenya Regulations Cuts Profits of Kenyan Microfinance Institutions
Financial Sector Deepening (FSD) Kenya, a trust fund that seeks to develop the capacity of the financial services industry in Kenya, recently released the results of a study on the effects of regulations imposed by the Central Bank of Kenya (CBK), the country’s central banking authority, on licensed microfinance institutions (MFIs) that aim to convert into deposit-taking institutions.
MICROCAPITAL BRIEF: Philippine Prudential Life Insurance Company Records Increase in Paid Microinsurance Claims, Premiums
The Philippine Prudential Life Insurance Company, a Philippines-based financial services provider, reportedly announced that its payments for microinsurance claims have increased by 784 percent from PHP 2.49 million (USD 58,400) in 2010 to PHP 22 million (USD 516,000) in 2011.
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Bans Minimum Deposit Requirements, Flat-rate Interest
The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, reportedly has ordered all banks in Nigeria “to allow new customers to open account with zero amount to attract more people into the banking system.”
MICROCAPITAL BRIEF: Initiative for Public Policy Analysis Calls for Regulation of Nigeria’s Payment Card Market
The Initiative for Public Policy Analysis, a Nigerian nonprofit public policy research institute, recently held an event to share its preliminary findings from research on the regulation of payment cards in Nigeria.
MICROCAPITAL BRIEF: New Microfinance Regulation in Botswana to Provoke Industry Decline and Business Closures
The creation of the Non-Bank Financial Institution Regulatory Authority (NBFIRA) in Botswana, was recently announced by MicroCapital, reportedly has disappointed microlenders in the country.
MICROFINANCE PAPER WRAP-UP: Credit is Not a Right; by By John Gershman and Jonathan Morduch; Published at the Financial Access Initiative (FAI) of New York University
By John Gershman and Jonathan Morduch, published by the Financial Access Initiative of New York University, April 2011, 9 pages, available at: http://www.microfinancegateway.org/gm/document-1.9.56804/Credit%20is%20not%20a%20right.pdf
MICROCAPITAL BRIEF: Draft Law Would Cut Subsidies, Cap Interest Rates in Sri Lanka, Establish Microfinance Regulatory Authority
The Sri Lankan government recently released a new draft law to regulate microfinance, which would establish a Microfinance Regulatory and Supervisory Authority (MRSA) run by a five-person board of directors.
MICROCAPITAL BRIEF: Botswana Approves Microfinance Regulations, Sets Licensing Requirements, Prohibits Taking Personal Documents
Kenneth Matambo, the Minister of Finance and Development Planning of Botswana, has reportedly approved a set of microfinance regulations including a mandate that non-financial institutions, individuals and companies that participate in microlending must register with the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) and apply for a formal license.
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Imposes Requirements on Communications with Microfinance
The Reserve Bank of India, India’s central banking authority, has recently established new guidelines for nonprofit microfinance institutions (MFIs) and non-banking finance companies (NBFCs) aimed at improving client-side transparency.
MICROCAPITAL BRIEF: Lower Tax Rate Proposed for Microfinance Institutions in Philippines
A senator of the Philippines reportedly has introduced a bill to lower the tax rate on microenterprise development institutions from an unspecified rate to 2 percent “of their gross income in lieu of all national and local taxes”.