Facing heat from the Andhra Pradesh (AP) government, microfinance institutions (MFIs) acting under a banner called MFI Network (MFIN) have agreed to adopt corrective measures to address concerns raised by the state government. Coming up with a 15-point corrective measures statement, MFIs have agreed to bring down the interest rates to 24% initially to the borrowers of AP only. “It’s an initial decision and our CEOs across other states will be discussing...

There has been a significant pick up in credit flow to industry, services and personal loan segments during the current financial year. However, credit flow to agriculture has declined further, data released by the Reserve Bank of India as part of Macroeconomic and Monetary Developments Second Quarter Review 2010-11 shows. While credit flow to industry was highest at Rs 1,07,386 crore, credit flow to agriculture contracted by Rs 13,481 crore during...

For generations, a majority of Vidarbha’s debt-ridden farmers have only grown cotton, making themselves vulnerable to unreliable market conditions. Now, these and other districts facing an agrarian crisis, as well as the rest of the state’s agriculture community may have some reason to smile. Rs 643 crore will be pumped into the state for the farmers, with the government going ahead with its ambitious Maharashtra Competitive Agriculture Project (MACP). On Tuesday, the...

To maintain projects to clean the river and restore its environmental health Centre to consider Uttarakhand's demand for free power in compensation for scrapped projects Conservation Action Plan approved for Gangetic dolphin, the national aquatic animal States through which the Ganga flows will soon be given additional funding to operate and maintain projects to clean the river and restore its environmental health. However, States lobbied for more aid and free power to those...

Microfinance is an effective tool for financial inclusion. Here are some elements of the recently embattled sector The recent controversy surrounding the microfinance sector has entirely eclipsed the fact that it is the first effort in India to have delivered financial services to remote corners of the country in a self-sustaining manner. The stakes are high for India’s poor, and we have to pave the way for orderly growth in the...