The Reserve Bank of India announced a 13-member committee to frame a clear and detailed vision for financial inclusion/deepening across the country.
Many microfinance institutions—realising the strength in numbers—are using the much-maligned credit derivative to tide over the severe credit crunch that has hit the sector.
There is no proof that microcredit alleviates poverty; on the other hand, it can make the already risky lives of the poorest even riskier, says researcher David Roodman
A few months ago, a big name in the financial world invested Rs 6 crore in securitised loans of micro finance institutions (MFIs).
Capital market regulator Securities and Exchange Board of India (Sebi) and the Unique Identification Authority of India (UIDAI) are considering linking all securities transactions with the UID (unique identification) or Aadhaar number and will soon launch a pilot project to explore how this can be done.
Around 38% of banks have branches in rural India while a mere 40% of the country’s population has bank accounts. The number of bank braches has risen from 8,700, at the time of bank nationalization in 1969, to around 85,300 presently. However, only 32,000 of these are in rural areas. The average population per bank branch is 13,900.
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