The underlying assumption of the proposed Land Acquisition Bill seems that the price paid to farmers is unreasonably low due to dominant power of industrial buyers, requiring government intervention. The draft, however, may neither accelerate the pace of land acquisition for industry nor overcome the psychological barriers of landowners that impede land transfers. First, the psychological barriers that limit supply. One of the main reasons for the farmers’ (and land dependents’)...

The Union government’s plan to recapitalize 40 of the 82 regional rural banks (RRBs) is at risk as some of the state governments are either delaying or refusing to pay their share of money. Due to this, the government has only been able to recapitalize around 12 RRBs, with the stakeholders collectively infusing Rs. 300 crore. The cabinet had approved the Rs. 2,200 crore recapitalization plan of 40 RRBs in February,...

In an attempt to extend the reach of banks in rural and semi-urban areas, the finance ministry has asked public sector banks to integrate their operations with regional rural banks (RRBs). "Charges for various banking services used by customers of RRBs are to be aligned with the sponsoring banks," a finance ministry official said on condition of anonymity. "Further, cheques or drafts issued by RRBs should be treated at par...

The Anna Hazare fast has seen an outpouring of support across the country. The government Lokpal Bill is unacceptable. A fresh Bill is needed for an effective Lokpal. There has been an outpouring of support all over the country in favour of the fast conducted by Anna Hazare for the Jan Lokpal Bill. The agitation has found support predominantly from the urban middle classes and a substantial section of youth belonging...

MFIs in Andhra Pradesh are paying for the sins of their past. Market for new loans has dried up, banks have turned off their spigots while the AP government is content to sit back and watch. It has been eleven months since the Andhra Pradesh government issued an ordinance—later converted into the Andhra Pradesh Micro-Finance Institutions (Regulation of Money Lending) Act—which, the microfinance industry hoped, would be the magic remedy that...