Mukherjee proposes Rs 100cr equity fund for MFIs
Finance Minister Pranab Mukherjee today announced creation of an equity fund of Rs 100 crore for micro finance institutions (MFIs), which will help the cash-strapped sector to continue lending to small borrowers.
February 28, 2011 / 18:44 IST
Finance Minister Pranab Mukherjee today announced creation of an equity fund of Rs 100 crore for micro finance institutions (MFIs), which will help the cash-strapped sector to continue lending to small borrowers.
Mukherjee, in his 2011-12 Budget speech, announced the creation of "India Microfinance Equity Fund", with the state-run Small Industrial development bank (SIDBI)."The micro finance institutions (MFIs) have emerged as an important means of financial inclusion. Creation of a dedicated fund for providing equity to smaller MFIs would help them maintain growth and achieve scale and efficiency in operations," Mukherjee said.The MFI sector had come under liquidity crunch after banks refused lending to them following a string of famers' suicide cases in Andhra Pradesh and the introduction of an ordinance in the state, now passed into an act, to regulate the MFIs operations. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
