MALEGAM COMMITTEE REPORT ON MICROFINANCE PDF

Report Summary. Malegam Committee on Microfinance. (January ). Background. The Board of Directors of the Reserve Bank of India. (RBI) constituted a. PDF | On Nov 7, , Saswat Barpanda and others published The Malegam Committee Microfinance Report: Will the MFIs Accept It?. Malegam Committee Report on MFI – Download as PDF File .pdf), Text File .txt) or read online.

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The much-awaited Malegam committee report is laudable because it is the 1 st committee report of some significance to attempt the creation on of a national regulatory framework for MF in India. While we can separately discuss on the pros and cons of some of the suggestions, I really liked one idea of yours which is the public private partnerships. The Malegam committee report must be strongly appreciated because it seeks to legitimize microfinance as an integral part of the Indian financial sector.

Fourth, the report has recognized and stressed the importance of off-site and on-site supervision of NBFC MFIs including systemically important mkcrofinance while also alluding to the need for significantly enhancing the supervisory capacity of RBI with regard to micro-finance. Dear Ramesh garu, As always I enjoyed reading this thoughtful analysis.

Overall, the Malegam Committee has done a highly commendable job with a very complex problem and that needs to fully recognized and well appreciated. What authority does RBI has in controlling state’s populist actions.

Malegam Committee Report on Microfinance: What’s On The Platter?

A second aspect is the use of caps for annual family incomerestricting it to Rs. That said, I have pointed out several issues that the committee would need to think about seriously and thanks for your views and let me look at them closely and your points are well taken That said, I am therefore a bit perplexed by the strong initial criticisms of the Malegam report…While stakeholders appear to have perceived several weaknesses in the report, I try to list some of these below and provide some explanations with regard to these issues, apart from suggesting ways forward.

Bonam Srinivas January 28, at We have reproduced the same on the India Microfinance website. A third issue that merits appreciation is the fact that the report has sought to promote greater transparency with regard to interest rates…through various measures.

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Bring all private microfinance players under one ambit, not just NBFCs. A very critical aspect indeed….

Malegam Committee Report on Microfinance: What’s On The Platter?

This is admittedly a suggestion that perhaps cannot be implemented on the ground. Similar to SHG-bank linkage program. Thanks for sharing this. Fifth, the strong emphasis on corporate microfinahce is note worthy and specifically, the committee has suggested that corporate governance rules will have to be specified encompassing several issues for NBFC MFIs by the regulator.

That is what Rameshs analysis shows. This ensures that micro-finance will come under the purview of the RBI and no longer can microfinance be treated as a fringe activity or as an orphaned child in the larger Indian financial sector.

Malegam Committee Report – Summary of Key Recommendations

Newer Post Older Post Home. Reporg really think there is a fantastic opportunity which is not getting the required attention. At the cost of repeating some of the things I have the commkttee to say – You may be aware that despite several requests from the sector till the recent past RBI was reluctant to regulate the sector as they felt it would stifle the growth.

Instead of criticizing fommittee let me offer some suggestions the RBI could consider before releasing the regulatory framework: As many have argued, the proposed margin caps would force MFIs to make larger loans.

Read on at Microfinance in India Blog. No doubt the report brings out some excellent recommendations that would go a long way in strengthening the sector.

Malegam Committee Report – Summary of Key Recommendations

A second aspect that deserves appreciation is the fact that while the report has recommended continuation of microfinancee sector funds for MFIs, it was however made it conditional — especially after recognizing some of the key problems like ghost lending, multiple lending, over lending and attempting to outline some measure to tackle them as well. I doubt if this changes just by adding a suffix without suggesting necessary amends in state moneylending laws.

Also the regulators focus when introducing guidelines would be more to see on handling exceptions, committtee how do you ensure that the borrower is not becoming a member in multiple groups and threatening the very basic principle of peer pressure on which the model works Abhay January 25, at 8: Consider expanding the definition of microfinance to include not just micro credit for all purposes but a full suite of financial services.

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Have a great day and wonderful start into the week! Bhalchander January 24, at Work From Home Work from home without Investment.

A second aspect that deserves appreciation is the fact that while the report has recommended continuation of priority sector funds for MFIs, it was however made it conditional – especially after recognizing some of the key problems like ghost lending, multiple lending, over lending and attempting to outline some measure to tackle them as well. On the other hand, the income caps will mean those loans are made to borrowers whose incomes less afford the higher debt.

Unfortunately both the Banks and MFis have let it down, microfinande si despite repeated warnings by RBI on various occassions, however, the going was so good that the MFIs felt that they have become super powers and none can microfjnance terms to them.

What do you think, did I misread the recommendations? Fourth, the report has recognized and stressed the importance of off-site and on-site supervision of NBFC MFIs including systemically important ones while also alluding to the need for significantly enhancing the supervisory capacity of RBI with regard maldgam micro-finance.

You may be aware that within 2 weeks all the MFIs have submitted the committee perhaps this is the only way things would work as we are used to learn the hard way.

This would be a pareto optimal solution indeed….

More importantly, the resultant search for greater efficiencies will surely result in more short cuts being taken with regard to client acquisition, client engagement and the like – we all know what problems that all of this caused in AP in the recent past. Swarup January 24, at 9:

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