Microfinance Advisory

The draft Microfinance Bill represents a major step forward in the government’s engagement with the microfinance sector. In the first main paragraph of its circular dated 3rd May 2011, the Reserve Bank of India made a clear statement of the decision to regulate the microfinance sector as a separate category. However the circular itself focused on the priority sector status of bank loans to MFIs and did not indicate how the decision on separate regulation was to be implemented in practice. A reading of the draft Microfinance Bill clears this uncertainty to a large extent and creates the expectation that a promotional framework for microfinance as a tool of financial inclusion can now be put in place.

It has been observed that most MFIs pursue crisis management rather than risk management. That is, more emphasis is laid on solving the current crisis rather than pursuing day-to-day risk management which in turn, produces only a temporary solution. Whereas, risk management is the
key to averting snowballing events. Most MFIs are many steps behind in risk management relative to the scale, scope, nature, and complexity of their activities and the market environment in which they operate

Riskpro understands that risk management in Micro finance institutions is not the same as larger Banking and Insurance sectors. Therefore, Riskpro has developed a unique service offering for this segment. The results and value addition from our advisory will be visible over time and on a long term basis.

DOWNLOADS
Microfinance - Regulations and Perspectives

More Info: 
Manoj Jain: 9833767114, manoj.jain@riskpro.in
Tags: 
Tags: 

Other Services of Interest

  • Cloud Security - Knowledge Snippets

    Riskpro presents a series of 5 articles / newsletters on cloud security. Cloud computing is attractive because it offers agility, resiliency and economy to organisations which adopt it. What is less...
  • Corporate Training Ideas - Risk Management and Compliance

    The following training options are appropriate for Banks, NBFC and small banks. • Basic fundamentals of Risk Management (half day) o Including Fraud, Reputational Risk issues also apart from...
  • Third Party Risk Management (TPRM) - Webinar

    EVENT OVERVIEW: TPRM or Third Party Risk Management is not a new concept, but something that needs to be addressed today. With Cybersecurity, Privacy issues emerging every day, often we find that...
  • Global Compliances - Free Webinar on key Global Regulations

    EVENT OVERVIEW: Riskpro India is conducting a free webinar on how to be future ready with respect to Global Compliances. Alleviate risk and strengthen your control on global compliance with this...
  • Sarbanes Oxley (SOX) Compliance - Free Webinar

    EVENT OVERVIEW: Riskpro India is conducting a free webinar on SOX (Sarbanes Oxley) Compliance which will take you through the applicability and requirements of the SOX 404 and 302 Act. The...
  • Internal Audit and IT Audit on Temporary Basis

    Due to the importance of regulatory compliances, it has become essential that companies are able to audit the business operations effectively. To meet this growing demand, Riskpro India offers...
  • India: Data Protection Services

    The EU General Data Protection Regulation (GDPR) is the most important change in data privacy regulation in 20 years. Now India has its own version of Data protection regulation that will change...
  • Fire Safety Assessments and Training

    Some of our features of Fire Safety Assessments and Training • Fire Science • The common causes of fire • Identify fire hazards • Types of fires and extinguishers • Fire...
  • Go to top