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...

In a significant step towards foolproof monitoring of micro finance institutions (MFIs) and gaining first-hand information on multiple lending, excessive rural indebtedness and irregularities in the sector, the state government has constituted four working committees that would integrate various databases of SHG bank linkage, ration cards & borrowers' data being submitted by MFIs on a priority. These committees would create and maintain the website on MFIs and also help in responding...

India has fallen three places to 87th in Transparency International's latest Corruption Perceptions Index, in which 178 countries were surveyed. India's integrity score has fallen to 3.3 out of 10 in 2010 while it was 3.5 in 2007 and 3.4 in 2008 and 2009. Transparency International India chairman P.S. Bawa on Tuesday said the recent damaging revelations in the Commonwealth Games contracts seems to have increased the perception about corruption and...

The Centre and states may vie to take credit for the MNREGS, but when it comes to footing the Bill for the job guarantee scheme, the story is different. Asking the Centre to notify new, revised wage rates “at the earliest” is, interestingly, a Congress-ruled state—Rajasthan. It also happens to be the home state of minister for rural development C P Joshi. Rajasthan principal secretary CS Rajan last week sent a letter...