Delivery of Microfinance service in India
The delivery of microfinance institutions (MFIs) around the world follows a variety of different methodologies for the provision of financial services to low–income families. The Task Force constituted by NABARD in 1998 to arrive at a conceptual policy framework encompassing issues in policy, regulation, financing, and capacity building, for sustainable growth of Micro Finance in…
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RBI direction on release of foreign exchange for miscellaneous remittances
RBI on Wednesday(July 3, 2024) today advised all authorised dealers that the earlier circular A.P.(DIR Series) Circular No. 16 dated September 12, 2002, A.P.(DIR Series) Circular No. 55 dated December 23, 2003 and A. P. (DIR Series) Circular No.118 dated May 07, 2012, has since been withdrawn with immediate effect and Authorised Dealers shall obtain…
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Concept of Grameen Bank Model
The concept of Grameen Bank has its roots in Grameen Bank of Bangladesh which was developed by the Nobel Laureate Prof. Muhammad Yunus. By establishing Grameen Bank in 1983, Muhammad Yunus sought to realise his vision of self-support for the very poorest people using loans on easy terms. The bank has since been a source…
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Evolution of Microfinance in the Indian Economy
The expression microfinancing has its roots in the 1970s when organizations, such as Grameen Bank of Bangladesh with the microfinance pioneer Mohammad Yunus, were starting and shaping the modern industry of microfinancing. In India, the concept of microfinance first came into existence in 1974 when Mrs. Ela Bhatt started the Self-Employed Women’s Association (‘SEWA’) of…
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Fair Practice Code for all NBFCs
The Reserve Bank vide its circular dated September 28, 2006, issued guidelines on the Fair Practices Code (FPC) for all NBFCs to be adopted by them while doing lending business. The same was revised with the sector including the creation of a New Category of NBFCs viz; NBFC-MFI and the rapid growth in NBFCs lending…
The National Bank for Financing Infrastructure and Development (NBFID)
The National Bank for Financing Infrastructure and Development (NaBFID/NBFID) was established as an infrastructure-focused development financial institution (DFI) under the National Bank for Financing Infrastructure and Development Act, 2021 to support the development of long-term non-recourse infrastructure financing in India including the development of bonds and derivatives markets necessary for infrastructure financing and to carry…
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