Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: ACCOUNTING STANDARDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ACCOUNTING STANDARD :: due date for vat payment :: form 3cd :: VAT Audit :: list of goods taxed at 4% :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India
 
 
« News Headlines »
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned
 All about income tax return form Sahaj
 Why seeing Form 26AS is a must before filing tax return and how to access it
 No tax on notice period pay cut
 Interpretation Of Central Goods And Services Tax (Cgst) Act (Part-1)
 What to do if you haven’t filed your taxes

FinMin opposes cap on micro-credit rates
June, 11th 2007

Disagreeing with the views of the Left parties and certain members of the Standing Committee of Parliament, the finance ministry has opposed any cap on interest rates for small loans under the Micro Finance Bill.
 
The Bill, which was introduced in Parliament, is currently under consideration of the Standing Committee.
 
Although some members in the Standing Committee want to put a cap on the interest rate on micro-financing, we are not in its favour as it can kill the institution of micro-financing even before it takes off, a senior finance ministry official said.
 
He said the ministry wanted to bring in as many players to the sector as possible, in the hope that competition would bring down interest rate to a reasonable level for small borrowers.
 
According to estimates, there are over 800 micro-finance institutions operating in India in various forms trusts, societies, cooperatives and non-banking finance companies.
 
The Bill, which was introduced by Finance Minister P Chidambaram, seeks to regulate small micro-credit institutions through the National Bank for Agriculture and Rural Development (Nabard), requiring them to meet stringent accounting standards.
 
However, the Bill does not contain any provision regarding ceiling on interest rates that could be charged from the borrowers.
 
Another official source said due to differences among the members of the Standing Committee and opposition from the Left parties, the Bill could not get Parliamentary approval during the Budget session. However, it is expected to get the nod in the coming session, he added.
 
According to the source, the finance ministry had brought to the notice of the Standing Committee that at a time when money lenders and commission agents were charging as much as 50-300 per cent interest, it should not insist on putting any limit on interest rate.
 
Any cap on interest rates would discourage big players such as private and foreign banks to lend to micro-finance institutions. We are certain that with more competition, the interest rate would come down, now in the range of 24-30 per cent, said the finance ministry official.
 
Pointing out that interest rate was not a problem for small borrowers like village women enterprises and landless labourers, he said rates were higher because micro-finance institutions provided loans at the doorstep of borrowers.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

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