Why we need uniform micro loan regulations

The Election Commission must ban loan waiver poll promises by all political parties. If their hearts bleed for the poor, they can always use the party funds to pay off the lenders

In the first week of February, while announcing the last monetary policy of the financial year, the Reserve Bank of India (RBI) pitched for a uniform regulatory framework for all lenders in the microfinance space.

What’s the provocation for this? Micro lending is no longer the turf of only the microfinance institutions (MFIs), which had primarily been the case a decade back when a southern state almost dug its grave by promulgating a state law (in October 2010) to curb the alleged excesses done by the industry. Following the recommendations of a committee, headed by noted chartered accountant and the longest