DripFin

DripFin means Drip Finance ala Drip Irrigation (i.e. small scientific value added productive measures)

Archive for January, 2008

Report of the Committee on Financial Inclusion

The Report of the Committee on Financial Inclusion is finally out !! Please download it by clicking this link. 

 Background of the Report: The Government in June 2006, had constituted a Committee to prepare a strategy of ‘Financial Inclusion’. The Ten Member Committee, was constituted under the Chairmanship of Dr. C. Rangarajan, Chairman of the Economic Advisory Council to the Prime Minister. The terms of reference of the Committee included:

i) To study the pattern of exclusion from access to financial services disaggregated by region, gender and occupational structure.

ii) To identify the barriers confronted by vulnerable groups in accessing credit and financial services, including supply demand and institutional constraints.

iii) To review the international experience in implementing policies for financial inclusion and examine their relevance/applicability to India.

iv) To suggest

– strategy to extend financial services to small and marginal farmers and other vulnerable groups, including measures to streamline and simplify procedures, reduce transaction costs and make the operations transparent.

– measures including institutional changes to be undertaken by the financial sector to implement the proposed strategy of financial inclusion.

– a monitoring mechanism to assess the quality and quantum of financial inclusion including indicators for assessing progress.

Government had been concerned that despite the vast expansion, modernization and diversification of ownership of financial institutions, a large number of vulnerable groups remain excluded from the opportunities and services provided by the financial sector. Such excluded groups include women, small and marginal farmers, people in the unorganized sector, the self employed and the pensioners. Government was anxious to correct this situation and extend the reach of the financial sector to such vulnerable group by minimizing, if not eliminating, the formal and informal barriers to access encountered by such groups.

The members of the Committee were Shri Vinod Rai, Special Secretary, Ministry of Finance, Dr. (Ms.) Rohini Nayyar, Adviser, Rural Development, Shri M.B.N. Rao, CMD, Canara Bank, Shri Yogesh Agarwal, MD, State Bank of Patiala, Prof. Mahinder Dev, Director, Centre for Economic and Social Studies, Hyderabad, Shri Vijay Mahajan, CEO, BASIX, Shri R. Gopalkrishnan, ED, TATA Sons, Shri A.P. Fernandes, Director, MYRADA and Dr. Y.S.P. Thorat, Chairman, NABARD.(PIB)

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RANGDE.ORG Launched, As promised, On 26th January 2008.

RangDe.Org has been launched today. I had met the founders, Smita and Ram, both highly motivated and wanting to make a difference. They want to reduce the rate of interest to the final consumer. They have a point.

The solution is www.RangDe.org ,  an online P2P lending platform like KIVA.

Best Wishes to Smita and Ram !!

Microfinance Passport Launched !

Serial Social Innovator and Foodie, Shivendra Sharma, (Ex – MD Planet Finance India, who gave to the microfinance sector The MPEA Awards, The Small Change Magazine has yet again delivered by launching the world’s first distance learning program in Microfinance i.e Microfinance Passport. Targeted at those inspired by microfinance, whether as practitioners, entrepreneurs, banking or finance professionals, researchers, students, career seekers or investors, it offers an opportunity to master the basics as well as the nuances of this nascent industry.

Deutsche Bank – Microfinance – An Emerging Business Opportunity

Deutsche Bank – Microfinance – An Emerging Business Opportunity – Click to Download.

 Must Read, Informative, Useful and Interesting Report !!

Background:  The report examines the attractiveness of microfinance for private sector investors. The report represents one of the first formal research paper on microfinance investments produced by a major financial institution. The study suggests that microfinance will evolve into a niche investment product that will increasingly attract both retail and institutional investors. Microfinance is also said to benefit from a further strong rise in socially responsible investments and to increasingly appeal to a wider range of commercial investors. As a result, the study forecasts individual and institutional investments to rise to USD 20 billion by 2015.