The Microfinance Institutions Network (MFIN), a trade association of Indian microfinance institutions, has announced its interest in registering with the Unique Identification Authority of India (UIDAI), India’s government organization established in 2009, for issuing identification numbers to Indian residents. If the UIDAI approves the request, the MFIN will enable its network of 100 million borrowers to obtain their customers’ identification numbers.
The UIDAI identification plan was established in 2009, to offer individuals a unique identity record which consists of personal and demographic data. MFIN believes that having access to this borrower data will allow its members to better track their loan accounts thus avoiding overindebtedness and improving transparency and governance.
According to a recent article, UIDAI may open its system to MFIN in the third phase of its implementation process, after registering state governments and banks. [1]
By Jennifer Shevock, Research Associate
About the Microfinance Institutions Network:
The Microfinance Institutions Network (MFIN) is a trade association of Indian microfinance lenders which consists of 39 MFIs in India. MFIN receives funding support from Omidyar Network, a philanthropic investment firm, and the International Finance Corporation (IFC), a member of the World Bank Group.
About the Unique Identification Authority of India:
The Unique Identification Authority of India (UIDAI) was established in 2009 as a department under the Planning Commission of India. Its role is to develop and implement the necessary institutional, technical and legal infrastructure to issue unique identity numbers to Indian residents.
Sources and Additional Resources:
[1] “Microfin cos want to be a UIDAI registrar ” July 7, 2010. http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/finance/Microfin-cos-want-to-be-a-UIDAI-registrar/articleshow/6136740.cms
MicroCapital Universe: Microfinance Institutions Network: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Institutions+Network+%28MFIN%29
MicroCapital Universe: Unique Identification Authority of India: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unique+Identification+Authority+of+India
MicroCapital Universe: Omidyar Network: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Omidyar+Network
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