An Economic policy and legal analysis of the Micro Finance Institutions (Development & Regulation) Bill, 2011
AbstractIn 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.
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Bibliographic InfoPaper provided by Indira Gandhi Institute of Development Research, Mumbai, India in its series Indira Gandhi Institute of Development Research, Mumbai Working Papers with number 2011-025.
Length: 29 pages
Date of creation: Oct 2011
Date of revision:
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More information through EDIRC
microfinance; regulation; crisis resolution; consumer credit; consumer protection; regulatory objectives;
Find related papers by JEL classification:
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
- K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-22 (All new papers)
- NEP-CIS-2011-10-22 (Confederation of Independent States)
- NEP-MFD-2011-10-22 (Microfinance)
- NEP-REG-2011-10-22 (Regulation)
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Interesting readings
by Ajay Shah in Ajay Shah's blog on 2012-05-15 12:33:00
- Addressing ponzi schemes: the three parts of the solution strategy
by Ajay Shah in Ajay Shah's blog on 2013-04-30 02:36:00
- Renuka Sane & Susan Thomas, 2012. "What should regulation do in the field of micro-finance?," Working Papers 2012-012, Madras School of Economics,Chennai,India.
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