tag:blogger.com,1999:blog-7182576430045656062.post4321173933730817804..comments2024-02-25T13:47:07.003+05:30Comments on Candid Unheard Voice of Indian Microfinance: The Proposed Credit Bureau for Micro-Finance in India: A Great Idea But Let It Not Be Baptism by Fire!Ramesh S Arunachalamhttp://www.blogger.com/profile/09264606020720529040noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7182576430045656062.post-15848279794467018582011-03-08T00:05:35.620+05:302011-03-08T00:05:35.620+05:30Dear Mr. Ramesh S Arunachalam and Bhalchander Vish...Dear Mr. Ramesh S Arunachalam and Bhalchander Vishwanath<br />(Why always CIBIL) or any other independent body, and MFIN should (perhaps) limit itself to playing the much needed facilitating/coordinating role. We are coming soon as third party CB Enterprise, could you let us know the support we may expect from MF, pse mail us ob ashokmoda@gmail.com<br />Thanking you, Regards, AshokAshokmodahttps://www.blogger.com/profile/07926223044279169080noreply@blogger.comtag:blogger.com,1999:blog-7182576430045656062.post-42643844079526477212010-11-30T10:26:08.187+05:302010-11-30T10:26:08.187+05:30hi Ramesh, you have well highlighted the challenge...hi Ramesh, you have well highlighted the challenges of setting up a good credit bureau in india especially for the under-priveleged segment where things are more informal. however the need for credit bureua is obvious and in its absence, lenders will continue to lend without adequate knowledge of the borrower's other debts and her ability to service the new loan. if we dont want to have andhra type situations, either we have to stop lending or lend with authentic knowledge of a members' other borrowings. the member herself most often tends to hide her other borrowings in the fear that the new loan may not be given. <br />MFIN is not trying to set up a separate bureua. it cannot also, since RBI licence is required for running credit bureaus. there are 4 approved bureaus in india and MFIN is working with them to set up the data of MFI cleints in these bureaus. hence investment and technology expertise are brought in by the bureaus and not going to be put in by MFIN. <br />the lending to the poor is done by SHGs, nbfc-mfis, ngo-mfis, individual money lenders and RRBs and UCBs. in AP, the government has clearly required all lenders to register with the govt and provide ration card number of all their borrowers and govt has committed to providing ration card number of shg borrowers. thus once this is done it is a simple exercise to match based on ration card and we can know the borrowings at a household level. and due to the 'Ordinance' effect, this work in AP is almost 100% completed within a matter of 4 weeks. so even in India, when pushed, everyone including governments are able to act fast! hence rather than focussing on the difficulties of the task on hand i believe we should have similar central level legislation making it mandatory on all participants who lend money to poor to provide ration card number along with other financial transacton data to any of the approved credit bureau. i am a strong beleiver that if the Central Government steps in, we can have authentic data of borrowings of all the poor in india in a matter of less than one month! this is absolutely required to ensure that flow of money to the poor is not cut off nor it leads to over indebtedness<br />regards/vasuvasudevanpnhttp://www.equitas.innoreply@blogger.com