Local address proof no longer a hurdle for unbanked Indians
Imagine you are a labourer in a village in Odisha and have painstakingly completed your Aadhaar formalities (for which you gave a proof of permanent address and your fingerprints).
Let’s not conflate microfinance with self-help-group financing
The microfinance industry has witnessed moves by the Reserve Bank of India (RBI) to revise the regulatory framework (March 2022) for it and also caution it against an exclusive focus on business growth (November 2022).
A framework for microfinance regulation that would suit India
An RBI paper with bold proposals for this sector should stir a discussion on broader policy reforms
A novel way for MSMEs to lower their risk profile and access funds
This problem can be solved by link-ups with large supply chains and networks that disperse risk and place small businesses in a better position to get loans and attract equity investors.
A conflict-ridden SIDBI needs the government to clarify its role
In their book, In Service of the Republic, Vijay Kelkar and Ajay Shah warn against distortions caused by the government and its entities being both player and umpire in various sectors .
How government backstops can best ease credit flows to MSMEs
The Indian government has set into motion the implementation of several schemes that are aimed at improving both the liability and asset sides of the balance sheets of banks and non-banking financial companies (NBFCs), so that lending to the real economy can increase. The most recently introduced are four schemes.
Fix the problems in Aadhaar-based cash transactions
Cash withdrawals through micro ATMs have surged in the wake of covid-related disruptions. But a considerable number of these transactions fail, thus worsening the pain of the vulnerable sections.
End-to-end liquidity transmission a must to serve the vulnerable
Small policy tweaks could be all that we need to revive MSMEs
The present government has set great store by micro, small and medium enterprises (MSMEs) and entrepreneurship as engines of growth.
Common conduct rules can help align financial services with customers
Individuals and households need access to reliable financial services like a safe and accessible place to save and affordable credit.