Recent events in south Asia have led to an unexpected reversal in the narrative of microfinance, long presented as a development success. Despite charges of poor treatment of clients, exaggeration of the impact on the poorest as well as the risks of credit bubbles, the sector can play a non-negligible role in reaching financial services to low-income households. In regulating the sector, there is need for caution in setting interest...

The UPA government has decided to allow cash payment of wages to workers under the Mahatma Gandhi National Rural Employment Guarantee Act in a desperate bid to increase demand for jobs that had gone down due to delayed payment of remuneration. Union Minister for Rural Development Jairam Ramesh on Monday made the announcement stating that the facility would be allowed in all the 60 left wing extremist (LWE) affected districts where...

Nandan Nilekani led Unique Identification Authority of India (UIDAI) has hit a Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) roadblock. The government had refused to make unique number or Aadhaar mandatory for making wage payment to people enrolled under the world’s largest social security scheme unless all residents are covered. The reason given was that MGNREGA is a universal scheme and anyone can demand work. Unless all resident in a district have...

-The Hindu   The government on Tuesday extended the terms of reference of the Nilekani task force on direct transfer of subsidies to include an Aadhaar-enabled unified payment infrastructure. Set up by the Union Finance Ministry under the chairmanship of Unique Identification Authority of India (UIDAI) chief Nandan Nilekani in February, the task force was asked to recommend and implement a solution for direct transfer of subsidies on kerosene, LPG and fertiliser to...

Ankaji Bhai Gangar, a 49-year-old subsistence farmer, stood in line in this remote village until, for the first time in his life, he squinted into the soft glow of a computer screen. His name, year of birth and address were recorded. A worker guided Mr. Gangar’s rough fingers to the glowing green surface of a scanner to record his fingerprints. He peered into an iris scanner shaped like binoculars that...