Tight liquidity continues; rise in bank rates likely for such lending. The Andhra Pradesh government will take some time to reply in the high court to the petitions filed against the Andhra Pradesh Microfinance Institutions (Regulation of Money Lending) Ordinance, issued last month. The Microfinance Institutions Network (MFIN), SKS Micro Finance and Spandana Sphoorty Financial have filed petitions saying the ordinance threatens to disrupt their business. The government sought an extension after...

Calls for “suitable directions” on paying statutory minimum wages A follow-up to NAC meeting, which felt there should be no deviation from statutory wages Andhra Pradesh and Gujarat Chief Ministers have also made a strong plea for minimum wages Sonia Gandhi has written to Prime Minister Manmohan Singh urging “suitable directions” on paying statutory minimum wages to workers employed under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS). The November 11 letter is...

Sonia Gandhi has written to the Prime Minister requesting him to find a way so that workers under the Mahatma Gandhi National Rural Employment Guarantee Act are paid the minimum wages across the country. In a letter dated November 11, Sonia wrote: “Since the matter is of an urgent and inter-ministerial nature, you may wish to have it examined and give suitable directions.” The National Advisory Council, headed by Sonia, had in...

The poster boy of microfinance is now seeking some anonymity. In Andhra Pradesh, the epicentre of the worst crisis faced by microfinance in India, SKS Microfinance is playing down its identity and going into preservation mode. At its modest office in a residential colony in Warangal district, India’s largest microfinance company has taken down its board. At its head office in upmarket Begumpet in Hyderabad, it hung a cloth mesh...

Leading micro-lender SKS Microfinance today hinted that it could move the courts if the recent Andhra Pradesh notification prohibiting collection of loan repayments on a weekly basis is not withdrawn.The notification stipulated that the periodicity of repayment by self-help group (SGH) members to MFIs should not be less than a month, even under existing loan agreements.However, microfinance institutions operating in the state have railed against the move."In the event the...