An Economic Policy and Legal Analysis of The Micro Finance Institutions (Development & Regulation) Bill, 2011

Published By: IGIDR on eSS | Published Date: August, 30 , 2011

In response to the Second Micro Finance Crisis in Andhra Pradesh, which took place in October 2010, the Ministry of Finance has pro- posed a new Micro Finance Institutions (Development & Regulation) Bill. This paper undertakes a detailed analysis of the draft Bill in terms of both economic policy and law. This analysis reveals many weak links, including: a lack of clarity on the objectives of the Bill; an insufficient focus on protection of the rights of the micro-borrower; lack of clarity about the definition of thrift; the loss of accountability that comes with multiple regulatory agencies; concerns about the rule of law; and constitutional issues about powers of the Centre versus the State Government. [WP-2011-025]. URL:[http://www.igidr.ac.in/pdf/publication/WP-2011-025.pdf].

Author(s): Shubho Roy, Renuka Sane, Susan Thomas | Posted on: Oct 17, 2011 | Views(364) | Download (55)


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