Clips

Innovations in Micro Finance: Field notes from Eastern Uttar Pradesh

A few colleagues and I recently travelled through Varanasi and Mirzapur in Eastern Uttar Pradesh visiting Micro Finance Institutions (MFI) in that region and their clients. I am delighted to report that this region, one of the poorest in India, is a hotbed of innovations.

http://www.ifmr.co.in/blog/2013/04/20/innovations-in-micro-finance-field-notes-from-eastern-uttar-pradesh/

Suggestions by FSLRC not to come in way of FCRA Bill

Recommendations of the Financial Sector Legislative Reforms Commission (FSLRC) to merge all financial market regulators in to one entity will not come in the way of clearing amendments in the Forward Contract Regulations Act amendment (FCRA) Bill.

http://www.business-standard.com/article/markets/suggestions-by-fslrc-not-to-come-in-way-of-fcra-bill-113041901209_1.html

Banks told to submit financial inclusion plan for next three years

Banks have been asked to finalise their next three-year Financial Inclusion Plan for the 2013-16 period, according to Deepali Pant Joshi, Executive Director, Reserve Bank of India.

http://www.thehindubusinessline.com/industry-and-economy/banking/banks-told-to-submit-financial-inclusion-plan-for-next-three-years/article4634041.ece?ref=wl_industry-and-economy

Insurance firms get serious on fake agents

Dealing with fraudulent agents has been one of the big issues for prospective and existing customers of insurance companies. And, insurance companies say they're active on the matter.

http://www.business-standard.com/article/finance/insurance-firms-get-serious-on-fake-agents-113042000002_1.html

Data: Enabling Country-led Actions to Address Financial Inclusion

Last year, the G20 leaders strengthened their commitment to measuring global and national financial inclusion efforts by endorsing a 'G20 Basic Set of Financial Inclusion Indicators' at the Los Cabos summit.

http://www.cgap.org/blog/data-enabling-country-led-actions-address-financial-inclusion

Girl Scouts Spearhead Financial Literacy Study

The majority of girls in the United States recognize the importance of money management and are interested in becoming financially empowered.

http://cfi-blog.org/2013/04/19/girl-scouts-spearhead-financial-literacy-study/

In Conversation with Economist Rohini Pande

Timothy Ogden and Economist Rohini Pande discuss how standard microcredit may undermine business investment in this FAI Video interview.

http://financialaccess.org/blog/2013/04/conversation-economist-rohini-pande

Clips

'Banking connectivity surges with BC mode'

Banking connectivity has jumped from about 67,000 villages in March 2010 to 211,000 villages in December 2012. The country has about 600,000 villages.

http://www.business-standard.com/article/finance/banking-connectivity-surges-with-bc-mode-113041801146_1.html

Can Mobile-Enabled Savings Products Bridge the Youth Financial Services Gap?

Many of the challenges to saving faced by the world's poorest people were highlighted in the recent Washington Post article "Microsavings Programs Build Wealth, Pennies at a Time."

http://cfi-blog.org/2013/04/18/can-mobile-enabled-savings-products-bridge-the-youth-financial-services-gap/

Islamic Microfinance And Clients: See What I Do, Not What I Say

A few years ago, while listening to a focus group of Muslim microfinance clients in Gaza, I heard something seemingly contradictory.

http://www.cgap.org/blog/islamic-microfinance-and-clients-see-what-i-do-not-what-i-say

Beyond GDP

ANNIVERSARIES are a good occasion to try something new. So when the Skoll World Forum, a big shindig for social entrepreneurs, celebrated its tenth anniversary in Oxford last week, it launched the Social Progress Index (SPI)—a new way to measure social progress that goes beyond the dominant metric of development, gross domestic product.

http://www.economist.com/blogs/feastandfamine/2013/04/social-progress

Clips

Beyond Profit: A Talk With Muhammad Yunus

http://opinionator.blogs.nytimes.com/2013/04/17/beyond-profit-a-talk-with-muhammad-yunus/

From Financial Literacy to Financial Capabilities: Implications for Practitioners

In the United States, it is financial literacy month, but all the talk these days is of financial capability. Why? Is this another fad to make the topic of financial literacy a little more interesting?

http://cfi-blog.org/2013/04/17/from-financial-literacy-to-financial-capabilities-implications-for-practitioners/

Experiencing Human-Centered Design For The Base Of The Pyramid

Over the past 18 months, CGAP has worked in three countries with a variety of partners to generate demand-side insights and design innovative products that work better for low-income households.

http://www.cgap.org/blog/experiencing-human-centered-design-base-pyramid

Youth Financial Services: Changing the mindset

With an estimated 1.2 billion young people between the ages of 15 and 24, the vast majority of them living in developing countries, youth are both a policy and political priority for many countries around the world.

http://blogs.worldbank.org/youthink/node/3500

Clips

Interview with Justice Srikrishna, Chairman, FSLRC

http://www.ifmr.co.in/blog/2013/04/16/interview-with-justice-srikrishna-chairman-fslrc/

The outbreak that enabled urbanisation: London in "The Ghost Map"

"It is August 1854, and London is a city of scavengers."

http://financingcities.ifmr.co.in/blog/2013/04/16/the-outbreak-that-enabled-urbanisation-london-in-the-ghost-map/

Hurdles to new financial code

The draft Indian Financial Code puts consumer protection at the heart of the financial system.

http://www.livemint.com/Money/nkpAhAcZpmFuIBgc9hd8IO/Hurdles-to-new-financial-code.html

RBI will introduce plastic notes on trial basis: Chakrabarty

Reserve Bank of India plans to introduce plastic notes on a trial basis, according to K.C. Chakrabarty, Deputy Governor.

http://www.thehindubusinessline.com/industry-and-economy/banking/rbi-will-introduce-plastic-notes-on-trial-basis-chakrabarty/article4623913.ece?ref=wl_industry-and-economy

Time SEBI got more teeth

So, you can be a college-mate-turned-confidante of the chairman of a conglomerate, his advisor for new ventures, director in his companies and still buy shares of a group company just days before it makes a major announcement without fear of being called an 'insider'.

http://www.thehindu.com/business/time-sebi-got-more-teeth/article4617434.ece

Does "Effective Interoperability" Equal Financial Inclusion?

In the work CGAP and Bankable Frontier Associates (BFA) did on Pakistan last year, we identified a way to measure progress on interoperability in retail payments in a country.

http://www.cgap.org/blog/does-%E2%80%9Ceffective-interoperability%E2%80%9D-equal-financial-inclusion

Silos No More: Financial Inclusion for the Whole Value Chain

Financial services and enterprise development practitioners often exist in their own separate silos—yet very poor producers need both increased access to markets and financial services in order to increase resilience and economic well-being.

http://cfi-blog.org/2013/04/16/silos-no-more-financial-inclusion-for-the-whole-value-chain/

The World's Three-Speed Economic Recovery

The main theme of our latest outlook is one that you have now heard for a few days: we have moved from a two-speed recovery to a three-speed recovery.

http://blog-imfdirect.imf.org/2013/04/16/the-worlds-three-speed-economic-recovery/

Researchers Finally Replicated Reinhart-Rogoff, and There Are Serious Problems.

In 2010, economists Carmen Reinhart and Kenneth Rogoff released a paper, "Growth in a Time of Debt." Their "main result is that...median growth rates for countries with public debt over 90 percent of GDP are roughly one percent lower than otherwise; average (mean) growth rates are several percent lower." Countries with debt-to-GDP ratios above 90 percent have a slightly negative average growth rate, in fact.

http://www.nextnewdeal.net/rortybomb/researchers-finally-replicated-reinhart-rogoff-and-there-are-serious-problems

Clips

The March Phenomenon in Agricultural Lending

The Task Force on Credit Related Issues of Farmers, chaired by Umesh Chandra Sarangi, in its report submitted to the Ministry of Agriculture, Government of India, in 2010, observes that while month-wise credit disbursement patterns should have been in line with ground level requirements of kharif (June, July, September) and rabi (December, January), one-fourth of the disbursements instead happen in March, a month that is not critical to agriculture production.

http://www.ifmr.co.in/blog/2013/04/04/the-march-phenomenon-in-agricultural-lending/

Govt shouldn't dictate delivery of mandate, says Subbarao

When it comes to speaking his mind on the independence of central banks, Reserve Bank of India Governor D Subbarao doesn't mince his words.

http://www.indianexpress.com/news/govt-shouldnt-dictate-delivery-of-mandate-says-subbarao/1097918/

New Insights From the Field on the Value of Life Microinsurance

Is there a business case for microinsurance? Does it provide value for clients?

http://cfi-blog.org/2013/04/04/new-insights-from-the-field-on-the-value-of-life-microinsurance/

Beyond Business: Rethinking Microfinance

In just 30 years, the microfinance movement has reached 200 million people who had been deemed "unbankable." That's a stunning success. But the narrative that drove this success has implicitly shut the vast majority of the unbanked out of the system.

http://financialaccess.org/blog/2013/04/beyond-business-rethinking-microfinance

Clips

FSLRC and consumer protection

Late last week, the Financial Sector Legislative Reforms Commission, or FSLRC, released its two-volume report. In the aftermath of the global financial crisis, financial regulation, especially consumer financial protection, has undergone significant changes.

http://www.business-standard.com/article/opinion/fslrc-and-consumer-protection-113033100300_1.html

FSLRC for financial law review every 3 years

The Financial Sector Legislative Reforms Commission (FSLRC) has proposed that financial sector laws be reviewed every three years. It has also suggested judicial review of regulations in its report released last week.

http://www.business-standard.com/article/economy-policy/fslrc-for-financial-law-review-every-3-years-113033100081_1.html

Srikrishna panel's report moots a unified regulator, but falls short on banks, says Dhirendra Kumar, Value Research

Last week, the Financial Sector Legislative Reforms Commission (FSLRC) came out with its report. Back in March 2011, this commission had been tasked with examining the regulatory structure and the laws governing the financial sector.

http://economictimes.indiatimes.com/opinion/guest-writer/srikrishna-panels-report-moots-a-unified-regulator-but-falls-short-on-banks-says-dhirendra-kumar-value-research/articleshow/19315668.cms

RBI set to unveil new norms for credit co-ops

The Reserve Bank of India (RBI) is expected to come out with new guidelines for credit cooperatives which are seen to be the weak link in chain when it comes to implementing anti-money laundering measures.

http://timesofindia.indiatimes.com/business/india-business/RBI-set-to-unveil-new-norms-for-credit-co-ops/articleshow/19315345.cms

A sea change in the knowledge of the young in India

In 1887, roughly 14 million children were born in India, and we got one Ramanujan. It seems reasonable to think that there were 9 others who went undiscovered.

http://ajayshahblog.blogspot.in/2013/03/a-sea-change-in-knowledge-of-young-in.html

Clips

Banks in TN take total deposit of Rs 4.11 lakh cr till Dec 12

The state has surpassed the national norm of 40% in share of priority sector advances, at 43.17%

http://www.business-standard.com/article/finance/banks-in-tn-take-total-deposit-of-rs-4-11-lakh-cr-till-dec-12-113032700241_1.html

Banks make progress, but more challenges lie ahead

The villages in India are witnessing a flurry of activity, thanks to the financial inclusion initiatives of banks.

http://www.thehindubusinessline.com/features/banks-make-progress-but-more-challenges-lie-ahead/article4551583.ece

Creating an Ecosystem for Sustainable Financial Inclusion through Community Institutions

Bihar, a state in Eastern India has more than 100 million inhabitants and is India's second poorest state. Ninety percent of the population lives in rural areas and the state has lagged behind in increasing access to finance in these areas.

http://blogs.worldbank.org/endpovertyinsouthasia/creating-ecosystem-sustainable-financial-inclusion-through-community-institutions

Are Youth-Inclusive Financial Services in MENA a Driver of Financial inclusion?

Last week, I participated in a Youth Financial Inclusion workshop for the Middle East/North Africa (MENA) region, organized by Silatech and CGAP.

http://cfi-blog.org/2013/03/27/are-youth-inclusive-financial-services-in-mena-a-driver-of-financial-inclusion/

Worse than AP: The Damage of a Repayment Crisis in Chiapas

A month ago I wrote a post singling out the Mexican state of Chiapas as a potential site of a coming repayment crisis. No, this is not a follow-up announcing that it has begun, nor am I rooting for one to start.

http://financialaccess.org/blog/2013/03/worse-ap-damage-repayment-crisis-chiapas

Europe: No Need To Worry, The Fire's Downstairs

Jeroen Dijsselbloem has been pilloried for his remarks following the conclusion of a deal with Cyprus. But is the assault just self-interested finance apologists (like, presumably, me) appalled at having their snouts removed from the public trough? Or are digs about his qualifications proving justified?

http://pawelmorski.wordpress.com/2013/03/27/europe-no-need-to-worry-the-fires-downstairs/

Markets in almost nothing

One of the first things I noticed when I started studying economics was that goods that can't be bought and sold are basically ignored. That might be fine for determining prices of stuff (especially if people have quasilinear utility), but when you have massively incomplete markets, the basic big results of first-year microeconomics - the welfare theorems - go totally out the window.

http://noahpinionblog.blogspot.in/2013/03/markets-in-almost-nothing.html

Clips

IFMR Capital: Securitizing Microloans for Non-Bank Investors

Columbia Business School has developed a case study documenting the background and the story behind the launch of IFMR Trust Pioneer II, the first rated microfinance securitization transaction to be placed with the capital market investors.

http://www.ifmr.co.in/blog/2013/03/12/ifmr-capital-securitizing-microloans-for-non-bank-investors/

Credit complementary services can uplift rural lending: IIM-A study

Instead of just looking to offer direct credit, formal lending organisations, especially co-operatives, should look to offer credit as a package with complementary services, says a study conducted by the Indian Institute of Management, Ahmedabad (IIM-A).

http://www.business-standard.com/article/finance/credit-complementary-services-can-uplift-rural-lending-iim-a-study-113031200272_1.html

Fallible beings

A LOT of faith is placed in the wisdom of central bankers, by politicians and investors. The former hope that monetary policy can prop up the economy while they attempt to reduce budget deficits; the latter tend to buy equities as soon as they think central bankers are easing.

http://www.economist.com/blogs/buttonwood/2013/03/central-bankers

Microfinance as a Tool to Fight Corruption

In Chinese, the word "guanxi" translates literally to "relationships" but in reality it is a much more complex term that describes how business is often done in China.

http://cfi-blog.org/2013/03/12/microfinance-as-a-tool-to-fight-corruption/

Mobile Money Adopters – Who Are They And What Can They Teach Us?

Knowing more about people who have adopted mobile money (MM) should provide insights into the type of individual that is most likely to adopt MM in the future. And that should help in the design of targeted below the line marketing campaigns; ultimately increasing the take up and usage of MM at a faster rate.

http://www.cgap.org/blog/mobile-money-adopters-%E2%80%93-who-are-they-and-what-can-they-teach-us

RBI's Issues Fresh Guidelines For Debit & Credit Cards, Online Money Transfers

The Reserve Bank of India has recently announced a new set of guidelines security and risk measures that banks need to take for electronic payment transactions.

http://www.medianama.com/2013/03/223-rbi-credit-card-money-transfer-guidelines/

Clips

Lending lives to those who rightfully live

For 47-year old Radhamma, life changed when Grameen Financial Services Private Limited, a registered non-banking financial company (NBFC) actively engaged in the Microfinance sector started operations in Kolihalli village, 10 kilometers from Tumkur.

http://newindianexpress.com/cities/bangalore/article1496828.ece

Video: Jonathan Morduch talks about the Reality of Poverty

Jonathan Morduch talks about the reality of the poverty in a keynote address at The College of St. Scholastica.

http://www.financialaccess.org/blog/2013/03/video-jonathan-morduch-talks-about-reality-poverty

A theorem fit to terrify bankers

Looking down the list of winners of the Nobel memorial prize in economics, two names are causing bankers across the world to break into a cold sweat. They are Franco Modigliani (laureate in 1985) and Merton H. Miller (laureate in 1990). Both men have been dead for years but their most important idea lives on with the undignified name of M&M.

http://www.ft.com/intl/cms/s/2/bb5caee4-85f9-11e2-9ee3-00144feabdc0.html#axzz2NCmZMaIs

Tests are torture: by Vinod Raina, replyied by Esther and Lant Pritchett

NYT: The Country That Stopped Reading

http://mobile.nytimes.com/2013/03/06/opinion/the-country-that-stopped-reading.xml

OPINION

OP-ED CONTRIBUTOR

The Country That Stopped Reading

Rose Blake

By DAVID TOSCANA

Published: March 06, 2013

EARLIER this week, I spotted, among the job listings in the newspaper Reforma, an ad from a restaurant in Mexico City looking to hire dishwashers. The requirement: a secondary school diploma.

Years ago, school was not for everyone. Classrooms were places for discipline, study. Teachers were respected figures. Parents actually gave them permission to punish their children by slapping them or tugging their ears. But at least in those days, schools aimed to offer a more dignified life.

Nowadays more children attend school than ever before, but they

Clips

Karnataka Municipalities Act, 1964: Functions & Functionaries – Part I

This post and the next one look at the Karnataka Municipalities Act, 1964, which is the enabling legislation for the 74th Constitutional Amendment Act in Karnataka. The two posts look at 3 main features of the Act- functions, functionaries and funds. The current post speaks about the first two features.

http://financingcities.ifmr.co.in/blog/2013/03/08/karnataka-municipalities-act-1964-functions-functionaries-part-i/

Financial regulators to sync efforts

Ahead of a new set of banks entering the Indian financial system, watchdogs agree to increase oversight.

http://www.livemint.com/Industry/TqP1WbdQqFTjMUWGRbXqjO/Regulators-sign-pact-to-monitor-financial-conglomerates.html

Life insurance sales pitch gets 'purer'

Don't be surprised if your life insurance agent pitches a pure term plan and the not the usual endowment, unit-linked and index-linked insurance products.

http://www.dnaindia.com/money/report_life-insurance-sales-pitch-gets-purer_1809110

Will This Bank Run Away? Women And Mobile Banking In Bihar, India

In Pilkhi village, Nalanda District of Bihar, in northern India, amid kerosene-lit lanterns that fight the encroaching darkness, I have a conversation with about 30 women. These women belong to the poorest families of the village, and have recently become part of self-help groups through a livelihoods project run by the state government.

http://www.cgap.org/blog/will-bank-run-away-women-and-mobile-banking-bihar-india

International Women's Day 2013: Where Are We With Women's Access to Financial Services?

http://cfi-blog.org/2013/03/08/international-womens-day-2013-where-are-we-with-womens-access-to-financial-services/

India: hint of recovery in microfinance

Grameen Financial Services, the prominent Bangalore-based microfinance institution, announced this week that it has raised Rs532m ($9.7m) in its third round of equity funding.

http://blogs.ft.com/beyond-brics/2013/03/08/india-hint-of-recovery-in-microfinance/#axzz2N16UMhRS

The Gender Gap in Access to Finance

International Women's Day is when we celebrate the strides made towards equality, but it also reminds us that gender is a powerful determinant of economic opportunities, particularly in developing countries.

http://blogs.worldbank.org/psd/the-gender-gap-in-access-to-finance

Getting the Problem Right

In terms of the age-old problem of helping farmers increase their productivity and income, I don't think agricultural credit and finance are the right problems to focus on.

http://www.developmentoutlook.org/2013/03/getting-problem-right.html

Clips

Regulator Supervision of the Suitability process: An example from UK

We have presented Suitability as the paradigm of choice for India's financial system and have put forward the idea of Suitability as a board-approved process that each financial services provider develops and adheres to across all functions of the firm.

http://www.ifmr.co.in/blog/2013/03/07/regulator-supervision-of-the-suitability-process-an-example-from-uk/

AP MFIs grow on back of eastern and northern markets

For the first time since the crisis Andhra Pradesh in Oct 2010, microfinance institutions have shown growth in Gross loan portfolio and disbursements. Notably, West Bengal has emerged as a new destination of south-based MFI in Bengal.

http://www.business-standard.com/article/finance/ap-mfis-grow-on-back-of-eastern-and-northern-markets-113030700508_1.html

StanChart in pact with ADB to support Asian MFIs

UK-based lender Standard Chartered Bank Plc on Thursday said it has tied up with Asian Development Bank (ADB) to support the growth of the microfinance sector in Asia.

http://www.livemint.com/Companies/fMzUQXBRGLyEi6OAmKEsdL/StanChart-in-pact-with-ADB-to-support-Asian-MFIs.html

Vikram Pandit joins race for Indian banking licences

The list of those interested in opening new banks in India is growing by the day. Apart from Indian corporates, realty firms, microfinance institutions and brokerages, many industry veterans, be it in IT or finance, are looking to fend off competition with the help of financially strong private equity funds.

http://www.firstpost.com/business/vikram-pandit-joins-race-for-indian-banking-licences-651421.html

RBI to publish clarifications on new bank licences

The Reserve Bank of India said it would publish clarifications related to the recently released final rules on bank licences on its website as it had received several queries from applicants seeking more details.

http://www.firstpost.com/fwire/rbi-to-publish-clarifications-on-new-bank-licences-652597.html?utm_source=fwire&utm_medium=cat_ideas

CIO Summit 2013: SKS Microfinance's Journey towards a Successful Cloud Deployment

CIOs have begun to look at cloud computing to take a key step toward better business agility, economics, and user-experiences. As one of the fastest-growing microfinance organizations in India, SKS Microfinance has grown by leaps and bounds with respect to its customer base, post a cloud deployment.

http://www.cio.in/news/cio-summit-2013-sks-microfinance-s-journey-towards-successful-cloud-deployment-379122013

Why Go Mobile in Rural Communities?

When we think about the way in which going mobile in a rural community might make sense, one of the first answers that comes to mind is "to make remote payments". After talking to people, we found out that the value and reasons for adopting mobile payments vary in different ways.

http://www.cgap.org/blog/why-go-mobile-rural-communities

Connecting the Pillars of Client Protection

The Smart Campaign's just wrapped up its Steering Committee meeting in Switzerland this week. This twice-a-year event is a wonderful opportunity to take stock of the Campaign's accomplishments, goals, and challenges, and receive feedback from stakeholders who represent the global microfinance market.

http://cfi-blog.org/2013/03/07/connecting-the-pillars-of-client-protection/

FAI Video: A Conversation with Pascaline Dupas

Pascaline Dupas of Stanford University talks to FAI about testing a commitment savings product for health investments.

http://www.financialaccess.org/blog/2013/03/fai-video-conversation-pascaline-dupas

The Hunt for India Bank Licenses

A new Indian bank could be coming your way, but who will get a license to operate in this potentially lucrative sector?

http://blogs.wsj.com/indiarealtime/2013/03/07/the-hunt-for-india-bank-licenses/

Going to the Roots - Budget 2013's focus on Agriculture

While going through the recent Budget 2013 session described vividly across various media sections, it would be safe in saying that it has not raised any major controversy or questions to some extent, though experts are still going through the same and are giving out their expert opinion on the same.

http://www.developmentoutlook.org/2013/03/going-to-roots-budget-2013s-focus-on.html

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Can micro finance institutions succeed in banking world?

Can RBI use the opportunity to issue new bank licences to make a big difference to the unbankable? None of the indian PSUs and private banks have cracked the bottom-up model but microfinance institutions (MFI) have.

http://www.moneycontrol.com/news/cnbc-tv18-comments/can-micro-finance-institutions-succeedbanking-world_834967.html

RBI orders performance audit of farm loan waiver

Considering the serious nature of the observations made by the Comptroller and Auditor General (CAG) on the gross misuse of the agricultural debt waiver and debt relief schemes, the Reserve Bank of India has asked all scheduled commercial banks and local area banks to undertake a complete verification of the list of beneficiaries with priority being given to areas where indebtedness was high.

http://www.thehindu.com/business/Economy/rbi-orders-performance-audit-of-farm-loan-waiver/article4482320.ece

New life cover norms notified

The Insurance Regulatory and Development Authority (Irda) has notified changes made to the guidelines on design of life insurance products in the gazette.

http://www.dnaindia.com/money/report_new-life-cover-norms-notified_1808280

Getting to Client-Centric Solutions: A Three-Part Strategy

When I was young, the word "camp" was synonymous with freedom and fun. These days are long gone. Today, the word conjures images of debate at best and of self-righteous positioning at worst. There seems to be a tendency in many fields for participants to divide themselves into opposing factions.

http://cfi-blog.org/2013/03/06/getting-to-client-centric-solutions-a-three-part-strategy/

A Reality Check on India's Fiscal Deficit

One set of figures largely ignored after the federal budget presentation last week was the Indian government's monthly accounts.

http://blogs.wsj.com/indiarealtime/2013/03/06/a-reality-check-on-indias-fiscal-deficit/

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Grameen Koota raises over Rs 53 cr in third round of funding

Microfinance firm Grameen Financial Services, popularly known as Grameen Koota, has raised its third round of equity funding of Rs 53.20 crore from Creation Investments, Incofin and MicroVentures.

http://www.thehindubusinessline.com/industry-and-economy/banking/grameen-koota-raises-over-rs-53-cr-in-third-round-of-funding/article4479058.ece

RuPay cards to reach out to more farmers by June 30

The National Bank for Agriculture and Rural Development (Nabard) wants the RuPay-enabled debit cards to reach out to a larger rural population and has asked all district central cooperative banks to implement core banking system by June 30.

http://timesofindia.indiatimes.com/city/pune/RuPay-cards-to-reach-out-to-more-farmers-by-June-30/articleshow/18824962.cms

Irda publishes five key reforms in gazette

The Insurance Regulatory and Development Authority (Irda) has published in the gazette of India five key reforms related to the sector, including new guidelines for insurers and reinsurers.

http://www.business-standard.com/article/finance/irda-publishes-five-key-reforms-in-gazette-113030500525_1.html

Is Banking Ever "Simple?"

In the United States, online banking has become the norm for many, with over 63 percent of U.S. households now using online financial services.*

http://cfi-blog.org/2013/03/05/is-banking-ever-simple/

Women and the Success of Mobile Financial Services

The mobile money revolution has been greeted with great excitement in some circles for the potential it holds to increase financial access for the world's poorest. Women may especially benefit from expanding financial inclusion through mobile financial services (MFS).

http://www.financialaccess.org/blog/2013/03/women-and-success-mobile-financial-services

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Financial inclusion plan key for bank licences: D Subbarao

Reserve Bank of India (RBI) Governor D Subbarao today said the financial inclusion plan would be a key criterion in issuing new bank licences.

http://www.business-standard.com/article/finance/financial-inclusion-plan-key-for-bank-licences-d-subbarao-113030400102_1.html

Banking licence aspirants need innovative financial inclusion plans: RBI

RBI governor D. Subbarao says the central bank wants to see more imaginative, cost-effective proposals.

http://www.livemint.com/Industry/j6dcj9dhWnRzHNTdY1kqQN/Banking-licence-aspirants-need-innovative-financial-inclusio.html

Mapping Financial Inclusion in India

Data visualists, rejoice! Much to our excitement, MIX has released the highly interactive India Map of Financial Inclusion. You might remember our profiling the MIX Africa Map of Financial Inclusion for the Poor late last year.

http://cfi-blog.org/2013/03/04/mapping-financial-inclusion-in-india/

East And Southern Africa: A Region On The Move

"There is need for financial service providers and other stakeholders to listen to clients, more research is required on who is left out with more focus on unserved segments of the market,"  said Dr. Jennifer Riria, Board Chair- Kenya Women Holding Company  and Board Chair of Women's World Banking at the just concluded East and Southern Africa funders meeting held in Nairobi, Kenya.

http://www.cgap.org/blog/east-and-southern-africa-region-move

The Next 30 Years: Whither Finance — Repression or Turbulence?

The recent financial crisis shocked the world. Aftershocks are still reverberating. The future of the Eurozone remains clouded. Much ink has been spilled about the causes of the crisis. Extraordinary measures have been taken to stimulate economies and rescue banks.

http://blogs.worldbank.org/allaboutfinance/the-next-30-years-whither-finance-repression-or-turbulence

Clips

Budget 2013: Finance minister P Chidambaram boldly votes for growth over politics

Never before has a finance minister rejected populist giveaways so decisively in an election year. Never before has a finance minister sought to win the next elections not through tax breaks and freebies, but by accelerating GDP growth and taming inflation through fiscal consolidation.

http://economictimes.indiatimes.com/opinion/columnists/swaminathan-s-a-aiyar/budget-2013-finance-minister-p-chidambaram-boldly-votes-for-growth-over-politics/articleshow/18738693.cms

A Budget of short term measures, no grand design

The budget is at best, a sincere bid to stave off threats of a possible downgrade by rating agencies and, at worst, an exercise of ad hocism.

http://www.livemint.com/Opinion/R5FifeK3Defmhzz0Xq7PbM/A-Budget-of-short-term-measures-no-grand-design.html

Budget 2013: Chidambaram promises to act on FSLRC

Finance minister P. Chidambaram has promised to act decisively on the recommendations of the Financial Sector Legislative Reforms Commission (FSLRC), which is expected to submit its report next month.

http://www.livemint.com/Politics/70KBkLZWynpaZuDQI3X17M/Budget-2013-Chidambaram-promises-to-act-on-FSLRC.html

Banks get nod to act as insurance brokers

Finance Minister P Chidambaram today said banks would be allowed to act as insurance brokers to increase insurance penetration in the country despite concerns expressed recently by the banking regulator against such a move.

http://www.business-standard.com/article/budget/banks-get-nod-to-act-as-insurance-brokers-113022800760_1.html

Government plans India's first women's bank

The new bank aims to reduce gender bias by offering loans to women-run businesses and self-help groups (SHGs), which is a core business of most microfinance companies in the country.

http://budget.business-standard.com/budget13/storypage.php?autono=162554

Budget Reactions: Budget has few schemes for microfinance sector says MFIN

The 2013-14 budget contains few initiatives for promotion of universal financial inclusion. From the standpoint of the Microfinance Industry, a token contribution of an additional ` 100 crore to the India Microfinance Equity Fund has been made.

http://www.moneycontrol.com/news/economy/budget-reactions-budget-has-few-schemes-for-microfinance-sector-says-mfin_832333.html

Budget 2013: Sebi Act to be amended, to get more powers

Finance minister P Chidambaram said the Securities and Exchange Board of India Act or Sebi Act will be amended to give more powers to the capital market watchdog.

http://economictimes.indiatimes.com/markets/regulation/budget-2013-sebi-act-to-be-amended-to-get-more-powers/articleshow/18728742.cms

Where's The Cash? The Geography Of Cash Points In Tanzania

The Financial Sector Deepening Trust of Tanzania (FSDT) has completed a census of cash outlets in the country, where basic cash in/cash out transactions can be conducted. The data was collected during April-July 2012, and is freely available to view on Google Maps here.

http://www.cgap.org/blog/geography-cash-points-tanzania

Clips

Govt extends RBI dy governor Sinha's term till Jan 2014

The government has extended the term of Anand Sinha, one of the four deputy governors of the Reserve Bank of India (RBI), to January 18, 2014.

http://www.business-standard.com/article/finance/govt-extends-rbi-dy-governor-sinha-s-term-till-jan-2014-113022600218_1.html

Mohandas Pai, former Citibank executive Ramesh Ramanathan in race for licence to start a bank

Mohandas Pai and former Citibank executive Ramesh Ramanathan will be part of the business groups throwing their hats in the ring for a licence to start a bank.

http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/mohandas-pai-former-citibank-executive-ramesh-ramanathan-want-licence-to-start-a-bank/articleshow/18702015.cms

NBFCs want priority sector tag to attract bank funds

With fund flow from banks to the non-banking finance companies drying up, the later has requested the banking regulator to create a separate class of NBFC for those who have bulk of their exposure to the priority sector so that bank finance to this sector could be clasified as priority sector lending.

http://www.business-standard.com/article/finance/nbfcs-want-priority-sector-tag-to-attract-bank-funds-113022600585_1.html

MFIs struggle to stay afloat as capital erodes, losses mount

Hefty provisions, coupled with the high operational costs, are eroding the net worth of microfinance institutions.

http://www.livemint.com/Industry/JPchgs20K34URvgzoPw4KN/MFIs-struggle-to-stay-afloat-as-capital-erodes-losses-mount.html

Sebi hints at single KYC registration

Complying with know your customer (KYC) requirements of each financial institution and intermediary separately can be irritating. Even the regulators know that.

http://www.dnaindia.com/money/report_sebi-hints-at-single-kyc-registration_1805072

Sebi and Irda clash again

The Securities and Exchange Board of India (Sebi) and the Insurance Regulatory and Development Authority (Irda) are, once again, at odds.

http://www.business-standard.com/article/markets/sebi-and-irda-clash-again-113022700002_1.html

Irda standardises health insurance

In order to remove ambiguity and confusion regarding the claim process, interpretation of health insurance terms and names and procedures related to critical illnesses across insurance companies, the Insurance Regulatory and Development Authority (Irda) of India has come out with new guidelines.

http://businesstoday.intoday.in/story/irda-standardises-health-insurance/1/192829.html

Turning the post office into a force for financial inclusion

In the old times, the post office was the main connector between cities and villages, moving letters and money to every corner of the country, and contributing towards the territorial consolidation of states under construction.

http://blogs.worldbank.org/psd/turning-the-post-office-into-a-force-for-financial-inclusion

New Paper Highlight: More Benefits of Mobile Money: Lowering the Cost of Remittances

One way to cope with an emergency is to borrow money from family and friends. But that typically doesn't work when a disaster strikes a whole area. Sending and receiving money over larger distances, when transferring cash from person-to-person is impractical or impossible, can be very expensive.

http://financialaccess.org/blog/2013/02/new-paper-highlight-more-benefits-mobile-money-lowering-cost-remittances

Unlocking Potential: Women and Mobile Financial Services in Emerging Markets

The majority of individuals around the world without formal bank accounts are women. In the developing world, 63 percent of women lack accounts, versus 54 percent of men.

http://cfi-blog.org/2013/02/26/unlocking-potential-women-and-mobile-financial-services-in-emerging-markets/

A perfect time for securitisation

India's government plans to open up its banking system, granting licences to a swathe of privately-owned banks in an attempt to boost lending in rural areas. This is a good plan, but it would be even better if regulators kick-started a domestic securitisation market at the same time.

http://www.euroweek.com/Article/3161033/A-perfect-time-for-securitisation.html

A day in the life of a tribal village market (Haat)...!

I am quite sure most of you have seen or know of a village haat or bazaar. Ever wonder what exactly happens out there?

http://www.developmentoutlook.org/2013/02/a-day-in-life-of-tribal-village-market.html

Clips

RBI welcomes new banks, with caution

The Reserve Bank of India has spelt out norms for new bank licences after years of waiting, allowing business houses, state-run enterprises and non-banking finance companies to set up banks, in a bid to extend banking services to half of the population that is excluded from them.

http://economictimes.indiatimes.com/news/economy/policy/rbi-welcomes-new-banks-with-caution/articleshow/18637599.cms

In its new guidelines, RBI opens bank licences to all

The Reserve Bank of India has opened the window for companies to apply for bank licences. The final guidelines issued on Friday do not debar any class of companies from applying to set up a bank.

http://www.indianexpress.com/news/in-its-new-guidelines-rbi-opens-bank-licences-to-all/1078508/

Financial inclusion must for new banks

Out of every 100 that a prospective applicant for a new banking licence wants to lend, it will have to lend 40 to small farmers, students or low-cost home borrowers and entrepreneurs.

http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/financial-inclusion-must-for-new-banks/articleshow/18636746.cms

Anand Sinha set to get another year as RBI dy governor

Sinha, the architect of new bank licence norms, will be a key member of the central bank.

http://www.business-standard.com/article/finance/anand-sinha-set-to-get-another-year-as-rbi-dy-governor-113022200614_1.html

Coming soon, Post Bank of India

The postal department plans to enter the banking business with the Reserve Bank of India deciding to grant new bank licences to entities with credible track-record.

http://www.thehindu.com/business/Industry/coming-soon-post-bank-of-india/article4443509.ece

AP High Court ruling has sent MFIs back to square one

Any tourist visiting the Charminar, the historic symbol of Hyderabad, is bound to drive past an impressive red and white stone building near the monument.

http://businesstoday.intoday.in/story/microfinance-andhra-pradesh-high-court-ruling/1/192620.html

When Demographics Shift the Way We Think about Youth Finance

The Center for Financial Inclusion at Accion recently released fascinating demographic data through the Mapping the Invisible Market project, as part of their Financial Inclusion 2020 campaign.

http://cfi-blog.org/2013/02/22/when-demographics-shift-the-way-we-think-about-youth-finance/

Sustainable Capacity Building Services Market: A Long Way To Go

In the fall of 2012 CGAP undertook a survey to better understand the dynamics of the market – both demand and supply - for capacity building services for financial service providers.

http://www.cgap.org/blog/sustainable-capacity-building-services-market-long-way-go