Role of Pension Fund Regulatory and Development Authority (PFRDA)
Pension Fund Regulatory and Development Authority (PFRDA) is a regulatory body established in 2003 with its headquarters in New Delhi. PFRDA was initially designed for government employees exclusively, but its services were subsequently expanded to include all Indian nationals and NRIs, including self-employed persons. On 23rd August 2003, the Interim Pension Fund Regulatory & Development…
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Insurance Business Globally and in India
The Insurance sector comprises two primary segments – Life and General Insurance. Life insurance includes whole life insurance, Term life insurance, Child Plans, Annuities life policies, and Endowment policies, etc. General insurance includes motor insurance, property insurance, and health insurance; crop insurance liability insurance, travel insurance, marine insurance, cargo insurance, etc. For details of these…
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Fair Practice codes for Microfinance Institutions
The Fair Practices Code document codifies the procedures to ensure clarity, transparency, Timelines, and responsiveness in the financial institution’s relationship with the borrower customers at all stages like marketing, processing, sanctioning, monitoring, and administration. The guidelines on the Fair Practices Code issued to various Regulated Entities (REs) since 2003, inter-alia, advocate fairness and transparency in…
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The role of Joint Liability groups (JLG) in delivering microfinance services
A Joint Liability Group (JLG) is usually an informal group of 4-10 people who seek loans based on a mutual guarantee. The loans are typically used for agriculture or related operations. This group of borrowers includes farmers, rural workers, and tenants. Each member of a JLG is equally liable for the timely repayment of the…
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Regulatory Framework for Microfinance Institutions
The Reserve Bank of India is the regulator of microfinance institutions in India. The RBI regulations are uniformly applicable to all microfinance lenders including banks, small finance banks, NBFC, and not-for-profit companies (regulated entities –RE). The provisions of Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022 The annual household income level…
What is the Infrastructure financing?
As per Merriam-Webster, Infra- means “below;” so the infrastructure is the “underlying structure” of a country and its economy, the fixed installations it needs to function. These include roads, bridges, dams, water and sewer systems, railways and subways, airports, and harbours. There is no clear definition for infrastructure financing stated anywhere. However, it is common…
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