Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: cpt :: TDS :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd :: ACCOUNTING STANDARDS :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India
« General »
 India’s GST among most complex in world, and it is 0% tax rate that is hurting the idea
 Can’t overrule courts with retrospective amendments, says Supreme Court
 Why tax planning should be an all-year round activity
 8 financial tasks you should do in the next 30 days
 Income Tax department may defend CPC in returns fraud case
  Income tax department sends notices to investors over tax treaty gains
 Seven months after GST rollout: Time for handholding over, Centre to intensify efforts to curb tax evasion
 Individual angels may get tax relief too
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious

RBI look for details of bank exposure to MFIs
November, 24th 2010

As the functioning of non-banking finance company-microfinance institutions are causing concern, the Reserve Bank of India has called for data from all banks on their exposure to these institutions.

Given that MFIs' operations have been impacted due to the Ordinance passed by the Andhra Pradesh Government last month, bankers fear that their loans to these institutions could turn bad.

Almost a third of MFIs' outstanding loans are in Andhra Pradesh. Banks have a collective exposure of about Rs 11,000 crore to MFIs.

The RBI, say bankers, may be trying to assess the quantum of loans that could turn bad and whether banks could go in for debt restructuring.

A series of reports about borrowers in rural Andhra Pradesh ending their lives due to strong arm recovery practices adopted by recovery agents led the AP Government to pass the Andhra Pradesh Microfinance Institutions (regulation of money lending) Ordinance, 2010, in October.

MFIs in the State are finding the going tough after the Ordinance was passed. Recoveries have come to a standstill as MFIs cannot deploy agents for recovery. On the interest rate front, the Ordinance has prescribed that no MFI can recover from the borrower an amount in excess of the principal amount.

Fearing bad loans, banks have become wary of taking further exposure to the MFI sector.

Industry-watchers say dual regulation by the RBI and the Andhra Pradesh Government of MFIs is bad for the sector. They pointed out that dual regulation has proved to be the bane of co-operative banks.

Mr Alok Prasad, CEO, Microfinance Institutions Network (MFIN), the umbrella body of all MFIs registered as NBFCs, said the MFI sector would be better off if it was regulated by the RBI and a Central Legislation.

With the MFIs' lending and recovery practices not going down well with the stakeholders rural borrowers, banks, RBI and the Government the RBI has set up a sub-committee to study issues and concerns in the microfinance sector.

The sub-committee, headed by Mr Y.H. Malegam, a senior member of the Reserve Bank's Central Board of Directors, will review the definition of microfinance' and microfinance institutions' for the purpose of regulation of NBFCs undertaking microfinance and examine the prevalent practices of MFIs in regard to interest rates, lending, and recovery practices.

It will also examine and make appropriate recommendations in regard to applicability of money lending legislation of the States and other relevant laws to NBFCs/MFIs.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions