Kerala   

Law soon to regulate micro credit agencies: Chidambaram

KOCHI: Union Finance Minister P. Chidambaram said here on Saturday that the Micro Financial Sector (Development and Regulation) Bill for regulating the operations of micro credit agencies would be passed soon to give these agencies the freedom to operate within the ambit of the law.

The non-profit agencies engaged in micro credit operations would be controlled mildly and the proposed legislation would help these operators grow stronger, he said while inaugurating the Janasree Sustainable Development Mission and a micro credit summit here.

He said that the micro credit agencies, along with NGOs, post offices and civil organisations would be the drivers for achieving the goal of inclusive development, to which the United Progressive Alliance government at the Centre was strongly committed.

The Minister said that he would advise banks to provide credit linkage to the Janasree self-help groups (SHGs). Initially it could be done for 10,000 SHGs and extended to 30,000 or more number of SHGs.

The Janasree programme was launched nearly a year ago and it had now a total of 10-lakh members spread over 30,000 SHGs. The number is expected to go up to 50,000 by March this year. He said the Janasree programme would not affect the operations of Kudumbashree programme, which, he said, did not belong to any particular party.

Financial inclusion was a great concern to the Union government.

More than 50 per cent of the people in the country did not have a bank account, said the Minister as he pointed out that growth alone was not sufficient.

The benefits of growth should go to the poorest of the poor and the government wanted to use micro credit and micro agencies for achieving the goal. He said that India was home to the biggest micro credit movement in the world.

There were 30-lakh SHGs now that accounted for a total of Rs. 80,000-crore bank credit. Kerala accounted for nearly two-lakh SHGs with a bank credit of Rs. 800 crore. About 90 per cent of the SHG members were women and the average loan availed was Rs.61,000.

He said that he would keep in mind suggestions for a welfare package for expatriate Malayalees, a revival package for Fertilisers and Chemicals Travancore and incentives to the Kerala Minerals and Metals while preparing the Union Budget for the next financial year.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Law soon to regulate micro credit agencies: Chidambaram
In anticipation
Reaching out to the terminally ill
Janasree not to hit Kudumbasree: Chandy
VS told to come clean on HMT deal
All smiles
Mass run
Top honour
Basheer had prophetic stature: Azhikode
The master storyteller gets a fitting abode
Development initiatives
Thunchan fete gets under way
Sundaymart: Pages CL1 & CL8
Interesting ware

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu