The recent crisis in the micro-finance industry, brought about by some incidents in Andhra Pradesh, has led to the development of a new concept in the Indian thinking on development — that of “responsible finance”. Responsible finance is supposed to mean financial activities by companies that make just about enough returns to stay in business and charge rates of interest on loans to the poor that are only marginally higher than what...

Faced with a liquidity crunch, microfinance companies have asked RBI to direct banks to set up an emergency fund of Rs 1,000 crore to help them tide over slowdown in their business. Sources said the Microfinance Institution Network (MFIN) is trying to convince the central bank in this regard. The micro finance sector has been reeling under a liquidity crisis after the Andhra Pradesh government issued an ordinance to control interest...

Chief minister Arjun Munda is all set to revive the Jharkhand State Planning Board — first formed during his second innings as head of state — to assist his government in drawing up development plans based on scientific assessment of available resources. The move comes close on the heels of the government setting up a three-member panel, headed by noted economist Bibek Debroy, to prepare the state’s development report. Speaking to The...

India may well be on its way to becoming a superpower, but for millions of marginalized communities — transgenders, female sex workers, men having sex with men (MSM), intravenous drug users (IDUs) — the struggle to live a life with dignity and respect continues. These communities face an uphill battle for a government recognised identity card cutting access to nearly all welfare schemes. Representatives from 20 NGOs and community based...

Indian Finance Minister Pranab Mukherjee said Friday he intends to regulate but not strangle the microfinance industry, which is in crisis because of new regulations and political attacks in its biggest Indian market, the southern state of Andhra Pradesh. In comments at the Hindustan Times Leadership Summit in New Delhi, Mr. Mukherjee said a committee of the Reserve Bank of India is looking at all aspects of microfinance, which has come...