Aug 07 2011 , Hyderabad:
The Government of India has plans to set up an exclusive bank to finance women self-help groups in the country, according to Union Rural Development Minister Jairam Ramesh.
“The proposal to set up an exclusive bank is on but will take some more time,” he said at press conference in Hyderabad on Saturday. The minister also promised support to Andhra Pradesh government’s plan to start an exclusive loan channel for SHGs. “We will support AP’s proposal not just morally and politically but also financially,” Ramesh said.
There were 2.5 million women SHGs in the country and they were getting loans to the tune of Rs 15,000 crore from commercial banks annually.
It may be recalled that Andhra Pradesh, which brought an Act last year to regulate the MFIs, has sought approval of the union government to float a non banking financial institution dedicated to meet the
microfinance needs of poor borrowers.
The proposed NBFC would have institutional ownership with both the state and central governments as key equity contributors. With initial capital of Rs 400 crore, it proposed to act as a for-profit organisation but lending at rates much below the rate given by MFIs.
Mandal Mahila Samakhyas, Andhra Bank and State Bank of India and National Bank for Agriculture and Rural Development are the other equity partners in the proposed NBFC.
Ramesh also said that Comptroller Auditor General of India has agreed to appoint an exclusive wing to conduct financial auditing of rural development ministry. The rural ministry spends about Rs 90,000 crore per annum, the second largest after the defence ministry and hence there is a need for a special audit, he said.
He said the social audit system in Andhra Pradesh was fairly strong.
“The proposal to set up an exclusive bank is on but will take some more time,” he said at press conference in Hyderabad on Saturday. The minister also promised support to Andhra Pradesh government’s plan to start an exclusive loan channel for SHGs. “We will support AP’s proposal not just morally and politically but also financially,” Ramesh said.
There were 2.5 million women SHGs in the country and they were getting loans to the tune of Rs 15,000 crore from commercial banks annually.
It may be recalled that Andhra Pradesh, which brought an Act last year to regulate the MFIs, has sought approval of the union government to float a non banking financial institution dedicated to meet the
microfinance needs of poor borrowers.
The proposed NBFC would have institutional ownership with both the state and central governments as key equity contributors. With initial capital of Rs 400 crore, it proposed to act as a for-profit organisation but lending at rates much below the rate given by MFIs.
Mandal Mahila Samakhyas, Andhra Bank and State Bank of India and National Bank for Agriculture and Rural Development are the other equity partners in the proposed NBFC.
Ramesh also said that Comptroller Auditor General of India has agreed to appoint an exclusive wing to conduct financial auditing of rural development ministry. The rural ministry spends about Rs 90,000 crore per annum, the second largest after the defence ministry and hence there is a need for a special audit, he said.
He said the social audit system in Andhra Pradesh was fairly strong.
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