India's banking industry has thrown its support behind microfinance lenders after weeks of upheaval and confusion. Major banks like the State Bank of India, Standard Chartered and Citi have all agreed to continue lending to microfinance firms. The multi-billion dollar industry was on the brink of a mass default. The banks' support has hung in the balance since lenders became embroiled in controversy in the southern state of Andhra Pradesh. About four weeks ago,...

The accusation of ‘coercive' practices to recover the loans has been laid at the doors of some leading players Micro Finance institutions (MFIs) that are for profits are in the news for the wrong reasons. The ‘for profit' MFIs have grown spectacularly in recent times. But along with the large profits have come allegations of sharp practices. In Andhra Pradesh, where such MFIs have a sizable presence, the climate has now drastically...

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...

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...

Farmers from Vidarbha and Marathwada regions will hold Maharashtra's first 'Kapus Parishad' (Cotton Conclave) here Oct 26 where they will demand higher prices for cotton, an activist said here Sunday. Organised by NGO Vidarbha Jan Andolan Samiti (VJAS), the conference will seek the government's intervention in increasing the prices of raw cotton from the minimum support price (MSP) of Rs.3,000 per quintal to Rs.4,500 per quintal. 'Cotton is the biggest cash crop...