IDEAS home Printed from https://ideas.repec.org/p/ess/wpaper/id1128.html
   My bibliography  Save this paper

The Micro Financial Sector (Development and Regulation) Bill, 2007: Legislative Brief

Author

Listed:
  • Kaushiki Sanyal

Abstract

While the Bill promotes the activities of MFOs, there are differing opinions on the cost efficiency of the MFO model. 􀂐 NABARD is designated as the regulator of the micro financial sector. However, its dual role as a key participant in the sector and the regulator could lead to conflict of interest. 􀂐 Banks and deposit taking Non-Banking Financial Companies (NBFCs) have to comply with Reserve Bank of India’s (RBI) prudential norms designed to safeguard depositors’ funds. While the Bill enables NABARD to prescribe norms for MFOs, it specifies some norms which are less stringent than for banks and NBFCs. 􀂐 Unlike banks regulated by RBI, the Bill does not exempt registered MFOs from the Usurious Loans Act, 1918 or state laws which cap interest rates. 􀂐 The Bill defines “micro financial services†to include insurance and pension services without specifying to whom such services are to be provided. This implies that every insurance and pension company would be regulated by NABARD.

Suggested Citation

  • Kaushiki Sanyal, 2007. "The Micro Financial Sector (Development and Regulation) Bill, 2007: Legislative Brief," Working Papers id:1128, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:1128
    as

    Download full text from publisher

    File URL: http://www.eSocialSciences.com/data/articles/Document1882007150.9740259.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huma Mahmood & Rusni Hassan & Syed Ahmed Salman, 2020. "Prospects of Islamic Microfinance: A Study in India," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 6(5), pages 176-187.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:1128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Padma Prakash (email available below). General contact details of provider: http://www.esocialsciences.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.