Report Summary. Malegam Committee on Microfinance. (January ). Background. The Board of Directors of the Reserve Bank of India. (RBI) constituted a. PDF | On Nov 7, , Saswat Barpanda and others published The Malegam Committee Microfinance Report: Will the MFIs Accept It?. Malegam Committee Report on MFI – Download as PDF File .pdf), Text File .txt) or read online.

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Enable public-private partnerships by linking MFIs with state-run microcredit programs. Please refer to www. A very critical aspect indeed….

Dear Sasi Garu Many thanks and I have enjoyed your analysis and responses as welll and I did with the one above It has shown the right strategic intent and direction for establishing a uniform national regulatory framework for micro-finance in India that attempts to put clients first… Ladies and Gentlemen, let us give the committee a Big Warm Hand …rather than JUST nitpicking on specific issues that can perhaps be sorted out through discussion and dialogue… Clearly, it is about time that we – stop being Penny Wise and Pound Foolish and – recognize the huge and legitimate platform for action that the Malegam committee has provided all of us….

As many have argued, the proposed margin caps would force MFIs to make larger loans. Sixth, there are several other aspects in the report that require commendation: Thanks once again for all your comments Best Regds Bonam Srinivas.

As it is proven that MFIs, are efficient and effective in reaching out the last mile, it would be interesting if the Govt and the MFis can explore and looking at ways of channelising the benefits available from the Govt. Posted by Ramesh S Arunachalam at 9: What do you think, did I misread the recommendations? Sasi Thanks for your mail and the suggestions. Hence, the committee may want to go with the existing RBI ceiling of Rs 50, for loan size as well as total loan outstanding and back it up by ensuring that MFIs have good loan origination and appraisal systems especially, for large non-consumption loans to individuals, which must also be permitted and appropriate ceilings for consumption loans as already proposed by the committee.


At the cost of repeating some of the things I have the following to say – You may be aware that despite several requests from the sector till the recent past RBI was reluctant to regulate the sector as they felt it would stifle the growth. Fifth, the strong emphasis on corporate governance is note worthy and specifically, cokmittee committee has suggested that corporate governance rules will have to be specified encompassing several malega, for NBFC MFIs by the regulator.

That is what Rameshs analysis shows. Further, the capping of loan amounts and loan outstanding would severely hurt the clients in the medium and long term in their efforts to climb out of poverty.

I think it would be unfair to criticize the Malegam committee report on the lack of implementation detail reporh after all, much of this can be detailed out only after the RBI committre the various recommendations and I am sure that necessary precautions by the RBI will be taken with regard to codes of conduct, client protection measures, corporate governance etc.

Malegam Committee Report – Summary of Key Recommendations

Bonam Srinivas January 28, at Once the initial recommendations are refined and suitably accepted, I would additionally add that the Malegam committee should recommend the creation of an ongoing working sub-group or expert group that continues to be engaged with the sector for several years to come and that creates an ongoing implementable roadmap for delivery microfinxnce other critical services that clients need.

The much-awaited Malegam microfinanc report is laudable because it is the 1st committee report of some significance to attempt the creation on of a national regulatory framework for Microfinance in India. Newer Post Older Post Home.

Last but not the least, the report pf the committee, while providing a good framework for the commjttee, perhaps does not adequately address the existing crisis situation in AP and slowly beginning to repoort in Tamil Nadu and issues around these — there are a large number of clients and JLG who have been shared at com,ittee field level, with each MFI reaching out to them, on a specific day of the week. Kaizad January 28, at 5: The committee must also recognize that caps on loan sizes and total loan outstanding may be some what restrictive for the clients and perhaps even at variation with current RBI policy.


I dont want to get into this as it would open up a number of questions is the suicides of the customer and the lack of customer protection measures under existing regulation. This would be a pareto optimal solution indeed….

Consider expanding the definition of malega, to include not just micro credit for all purposes but a full suite of financial services.

The Malegam committee report must be strongly appreciated because it seeks to legitimize microfinance as an integral part of the Indian financial sector.

Malegam Committee Report on Microfinance: What’s On The Platter?

This ensures that micro-finance will come under the purview of the RBI and no longer can microfinance be treated commkttee a fringe activity or as an orphaned child in the larger Indian financial sector.

Overall, the Malegam Committee has done a highly commendable job with a very complex problem and that needs to fully recognized and well appreciated.

Work From Home Work from home without Investment Everybody dreams of working from home and being your own boss but very few But I guess it was left with no other option. Read a lot of your work and enjoy it I agree that the committee provides much feport legitimacy to the sector by emphasizing the need for enhanced regulation.

Finally, regulate not micro-manage. This seems fair from an equity pun intended perspective….

Seriously consider the proposal of small finance banks. Abhay January 25, at 8: We have reproduced the same on the India Microfinance website. More importantly, the resultant search for greater efficiencies will surely result in more short cuts being taken with regard to client acquisition, client engagement and the like – we all know what problems that all of this caused in AP in the recent past.

A third issue that merits appreciation is the fact that the report has sought to promote greater transparency with regard to interest rates…through various measures. How to earn Rs in 10 Minutes.