Public uproar over 20 suicides in two months has forced the Andhra Pradesh government to act to regulate micro-Finance institutions. On October 14, the state government brought an ordinance making it compulsory for MFIs to register themselves, declare the effective rate of interest they charge, ensure that no security is sought for loans and no coercion is used for recovery. Non-compliance will be punished with a three-year prison term and a...

SKS MicroFinance, India's largest microFinance player, arrived with a bang with its hugely successful IPO in August. However, the recent sacking of its MD and CEO Suresh Gurumani  has opened up a pandora's box that is now threatening to expose the ugly underbelly of the sector which, many allege, is teeming with players who are no better than moneylenders but have so far been able to operate under the pious...

UPA-II's ambitious programme to make the nation slum-free within five years is all set to take off as the housing and urban poverty alleviation ministry has finalised the scheme, and how now sent it to Finance ministry for approval. Last year, the government had announced the launch of Rajiv Awas Yojana (RAY) aimed at making cities slum-free, addressing the problems of slum-dwellers and urban poor in a definitive and holistic manner....

Interest rates on loans from microFinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers — many of whom are yet to get even a bank account — while urban customers get personal loans at 12 per cent from commercial banks. Though neither the RBI nor the government has fixed any ceiling on...

Last month, leaders from 185 countries met in New York to take stock of progress in achieving the Millennium Development Goals (MDGs) — which include, among other things, eradicating poverty and hunger, reducing child mortality, improving maternal health — that were set in 2000 by the United Nations. The aim was to achieve these goals by 2015. But 10 years down the line, the world is way behind targets in achieving...