The Royal Monetary Authority (RMA) of Bhutan, the country’s central bank, reportedly is finalizing a Financial Inclusion Policy (FIP) to enhance the country’s microfinance sector. The policy is intended to assist in enhancing the agriculture sector, which provides livelihood to approximately 60 percent of the country’s population. Details on the policy, which was introduced in April of this year, have not been released.
There reportedly are four regulations set to be approved to support the implementation of FIP in the following arenas: e-money issuers; deposit-taking microfinance institutions (MFIs); nondeposit-taking MFIs; and the establishment of an apex institution to provide funds to other MFIs.
Microfinance clients in the country now reportedly borrow amounts between BTN 30,000 (USD 536) and BTN 50,000 (USD 893) and pay between five and 10 percent interest per month.
The one MFI in the country that reported 2010 data to the US-based nonprofit Microfinance Information Exchange (MIX), Bhutan Development Bank Limited (BDBL), held a gross loan portfolio of USD 79 million distributed to approximately 24,500 borrowers.
By Charlotte Newman, Research Associate
Sources and Additional Resources:
Bhutan Observer: “Microfinance in the Offing,” http://www.bhutanobserver.bt/microfinance-offing/
MicroCapital.org story, April 5, 2012, “MICROCAPITAL BRIEF: Nepal Rastra Bank (NRB) to Increase Number of Bank Branches in Remote Areas,” https://www.microcapital.org/microcapital-brief-nepal-rastra-bank-nrb-to-increase-number-of-bank-branches-in-remote-areas/
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