The microcredit revolution has been celebrated for helping poor women in developing countries start small businesses. By borrowing money for purchases such as a buffalo or sewing machine, the women were able to help lift their families out of poverty. But critics say the microcredit model has been perverted by commercial greed in India, with reports of abusive collection methods and sky-high interest rates. "What began as a simple, innovative model...

All school children across the country will soon have unique identification numbers (UID) which will help in tracking their movement in educational institutions and academic records. This follows the signing of a Memorandum of Understanding between the Union Human Resource Development Ministry and the Unique Identification Authority of India (UIDAI) here on Wednesday. The system will help in tracking students' mobility by creating an electronic registry, right from the primary level through...

According to the National Bank of Agriculture and Rural Development (NABARD) data on Loans given out by nationalised and cooperative banks, there are more farmers doing agriculture in Delhi than Madhya Pradesh, Uttar Pradesh, Karnataka and West Bengal. The farmers in Delhi were allotted loan of Rs 22,077 crore in 2009 alone at mere 5% rate of interest, which is the second highest after agriculture-rich Punjab. Delhi’s loan disbursal amount is bizarre,...

A worried government has put on fast track the proposed bill to regulate micro-lenders, as it seeks to ensure that over-regulation by states does not kill the sector that is envisaged to play a big role in furthering financial inclusion. The finance ministry could move a bill in the winter session of Parliament that will make Nabard responsible for regulation of all non-profit microfinance institutions structured as trusts, cooperatives, or mutual...

The Centre is planning to impose a ceiling of 18 per cent on the interest rate charged by MFIs on Loans to SHGs. This was indicated by Union Finance Minister Pranab Mukherjee to Chief Minister K. Rosaiah during a telephonic conversation recently. Disclosing this at a media conference here on Monday, Minister for Rural Development V. Vasanth Kumar and Minister for Agriculture N. Raghuveera Reddy said Mr. Mukherjee informed that the...