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

Clips

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/

Clips

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

Clips

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