The Andhra Pradesh Microfinance Institutions (Regulation of Money Lending) Ordinance, 2010, suggests there’s more politics than understanding of economics that went into it. The setting up of district registering authority under the ordinance, with elaborate powers to even cancel licences, will increase risks of operations posing serious hazard to business plans and will jeopardise the whole MFI network. Especially stifling is the requirement that MFIs have to submit a monthly...

The Communist Party of India (CPI) state secretary, Dr K. Narayana, has demanded that the government impose ban on micro finance companies (MFCs) to prevent escalation of suicides in villages. Speaking to reporters here on Friday, he alleged that the government-created poverty has been forcing the farmers and various sections of the society to end their lives and the toll will rise if the MFCs are allowed to continue. He alleged...

Banks will have to put in place a mechanism to verify that microfinance institutes (MFI) they finance do not charge exorbitant rates to the final borrowers. The finance ministry has asked banks to ensure that MFIs, whom banks are financing, do not lend at rates more than 24% — all inclusive rates — to the ultimate borrowers. Some banks have recently inserted a clause while lending to MFIs that they...

The lengths to which a government body can go to harass a whistleblower is evident from an RTI reply that discloses it paid Rs 69.24 lakh in lawyers' fees over an 18-month period and the bulk of the money went to Congress spokesperson Abhishek Manu Singhvi. Responding to whistleblower Abhijit Ghosh, Central Bank of India disclosed on July 1 that it had spent the money on lawyers from October 2008...

The task of providing water where needed is becoming increasingly difficult across the world. Countries have, in recent decades, been investing in infrastructure designed to alleviate water shortages. But the response has, for the most part, overlooked the problem posed by the deteriorating state of aquatic resources. If the growing crisis is to be effectively addressed, water use needs to be linked with environmental care. In many places, even where water...