Yaga Venugopal Reddy , former Reserve Bank of India governor credited with saving the nation’s financial system from the 2008 meltdown, has said what many finance experts believed, but did not have the courage to admit publicly: microfinance is India’s subprime. “Ultimately, it’s something like subprime lending,” Mr Reddy told ET in an interview ahead of his book release. “The same incentives are operating here... it was securitisation and derivatives that...

An all-party meeting in India has failed to break a parliamentary deadlock over opposition demands for an inquiry into an alleged telecoms scam. Parliament has been adjourned for two weeks because of the stand-off. Telecommunications minister A Raja quit last week, denying claims that he had undersold mobile phone licences by billions of dollars. The government has ruled out a joint inquiry, saying "impartial" agencies were already investigating. Correspondents say the widening scandal involving...

In what may change the way banks and cellphone companies as well as official agencies collect and process information about individuals, the government is proposing Legislation that will empower citizens with sweeping rights to legal recourse against any misuse of personal data. The first draft of the proposed Legislation has been released for public debate by the department of personnel and training (DoPT). The main aim of the umbrella Legislation will be...

India’s rapidly growing private microcredit industry faces imminent collapse as almost all borrowers in one of India’s largest states have stopped repaying their loans, egged on by politicians who accuse the industry of earning outsize profits on the backs of the poor. The crisis has been building for weeks, but has now reached a critical stage. Indian banks, which put up about 80 percent of the money that the companies...

Basic social security remains out of reach for most people across the world, especially in poorer countries, despite the crucial role it plays in cushioning people from the consequences of economic crises, according to a United Nations report unveiled today. The “World Social Security Report 2010-2011: Providing coverage in times of crisis and beyond,” prepared by the UN International Labour Organization (ILO), examines the gaps in access to social security programmes...