IN A small village north-west of Bangalore, peasants queue for identities. Each man fills in a form with his name and rough date of birth, or gets someone who can read to do it for him. He places his fingertips on one scanner and stares at another. A photograph of his face is snapped. These images are uploaded to a computer. Within a few weeks he will have an identity...

SKS Microfinance Ltd on Thursday said it may downsize operations and even “shut shop” in Andhra Pradesh, which accounts for a quarter of its business, if the southern state retains its recent Act governing microcredit operations. “If the state Act is not repealed, we wouldn’t have a choice but to shut shop in Andhra and leave,” founder and chairman Vikram Akula said. India’s largest and only listed Microfinance institution (MFI) would not,...

Microcredit lifted 10 million Bangladeshis out of poverty between 1990 and 2008, according to a report. The work of Grameen Bank and others helped many families to raise their income above $1.25 a day, said the US-based Microcredit Summit Campaign. The study follows recent criticism of Microfinance, which works by providing small loans to people to invest in generating their own incomes. Some experts argue the report may have missed the bigger picture. They...

A generally beleaguered Microfinance industry was eagerly waiting for Yezdi Malegam for deliverance. Any conversation about the Microfinance business would end with the expectation that the Malegam committee would deliver a healthy dose of oxygen to the choking Microfinance industry. The report was expected to be the panacea for all that ails Microfinance in India. The report, which came out on Monday, disappoints not only in its inability to meet these...

Even though the Central Government agreed to link the wages paid under MG-NREGA to the Consumer Price Index for Agricultural Labourers (CPIAL), it shied away from paying statutory minimum wages in various states of India. Their logic for this: Lack of clarity on who will bear the extra financial burden—the Centre or the states? A letter from the Prime Minister Manmohan Singh to UPA and NAC Chairperson Sonia Gandhi dated 31...