The New Middle

The research referred to, in this article says, “India’s middle class has seen new entrants. Pani puri vendors, dosa sellers, carpenters, welders, launderers, drivers and cable TV technicians have all pulled themselves out of the clutches of poverty and leapt into a section of the middle class — the bedrock of the economy.” I am […]

Way Ahead for Small MFIs in India

Prelogue: The RBI has granted approval for setting up small finance banks to ten organizations. Eight of these are MFIs. Introduction The microfinance sector in India has grown impressively over the previous ten years. This has ensured that millions of Indians now have access to institutional credit. The sector has traditionally been characterized by a […]

Significant Risk Events in Indian Banks in the Recent Past

Risks are integral part of banking operations. There have been three clear instances where Indian Banks have seen materialization of risks in recent months. This paper presents these events and important lessons in risk management from these. Download the paper by clicking the link below. Significant Risk Events in Indian Banks in the Recent Past

Impact of Code of Conduct Assessments

Between 2010 and 2014, over 100 Code of Conduct Assessments have been carried out by all the service providers, with M2i performing 42 of these assessments. The COCAs commissioned by SIDBI have been published on its website. Since these reports are in the public domain, there is increased focus on the part of MFIs to […]

Financial inclusion with caution

Regulations, in a financial system provide the assurance that only the financial institutions that are worth operating operate and the general public’s interests are protected. If the regulations rigorously protect the interest of the public it builds faith in the financial system. This also relieves the people from doing their own research and analysis before […]

Enabling conditions for positive impact for MFI clients

There are certain enabling conditions under which the clients are likely to benefit more from provision of microfinance. Our research indicates that the following enabling conditions allow clients to benefit more from provision of microfinance. Skills: In almost all the instances where positive impact has been witnessed, clients had required skills necessary for the enterprise […]

Credit Risk Measurement in MFIs

The credit risk measurement systems in MFIs need to evolve substantially in order to sustainably provide collateral-less loans to poor clients. While lending through the group guarantee mechanism has ensured sound portfolio quality for long periods of time, we have in the recent past witnessed situations when there has been a rapid decline in portfolio […]

Plastic Waste to Crude

Sanitation and energy remain two important challenges for India. And it seems a couple of Indian innovators may have a solution. Nitin Bondal and Raghuvendra Rao have set up STEPS, a company that uses Polycrack system developed by the duo to convert all kind of plastic waste to crude. They have recently been featured by […]

Addressing Capital Constraints Utilizing SPVs Created Under GOI's Enterprise Cluster Initiatives

Addressing Capital Constraints Utilizing SPVs Created Under GOI’s Enterprise Cluster Initiatives

Like any other enterprise, microenterprises, too require risk capital. While equity is the foremost form of risk capital, and could come from internal or external sources, microenterprises face severe constraints in accessing it. Credit guarantee schemes address the need for risk capital partially as these facilitate the flow of loan funds into microenterprises. However, by […]