Amidst hue and cry over micro-finance institutions (MFIs) charging the rural poor exorbitant interest rates, Reserve Bank of India norms continue to allow these entities a free hand in determining their charges. The banks lending to MFIs too continue to have full discretion in fixing their rate of interest. RBI has issued a latest master circular reiterating its earlier stand on micro-credit on February 14. Master circulars are like ready-reckoners on...

India’s rulers have found a new vocation – maligning environmentalists and questioning the very idea of regulating industry for pollution. Thus, faced with criticism of Lavasa, an artificial gated city of the super-rich near Pune, in which his family has invested crores, Agriculture Minister, Sharad Pawar, lashed out at well-known activist Medha Patkar and other “vested interests” for obstructing this “pioneering” project. Lavasa’s promoters built the project without seeking environmental clearance...

Kerala, Punjab, Tamil Nadu high on HDI: study In a study done by Abusaleh Shariff, chief economist at the National Council for Applied Economic Research (NCAER), Gujarat surprisingly emerges as a State with high levels of hunger, while simultaneously boasting high per capita income and consistent income stability. The hunger levels in Gujarat are higher than in Tamil Nadu and West Bengal, and surprisingly even higher than in Uttar Pradesh, according to...

India’s microfinance institutions (MFIs), under pressure because of stricter rules in their largest market Andhra Pradesh and the consequent slump in repayments there, may get a boost from the Asian Development Bank (ADB). ADB is constituting a $250 million (around Rs1,135 crore) facility to offer guarantees against loans to MFIs extended by banks in the Asia-Pacific region where it operates, including India. The move is aimed at encouraging banks to lend...

The budget for the next fiscal is likely to step up the target for farm credit to 4,50,000 crore, up 20% from the current year's 3,75,000 crore. With the agriculture sector seen growing at 5.4% in the current fiscal, the government will push banks to disburse more to the sector to maintain the momentum, said a senior government official. The upheavel in the micro-finance sector will also necessitate greater lending by banks. "The...