Money & Banking
MFIs should follow respectful method of loan recovery: FM

Chidambaram said the micro-finance institutions should adopt responsible financing by way of transparency and interest rate rationalisation and must follow respectful recovery procedure

New Delhi: The micro-finance institutions (MFIs) need to have a code of conduct and must follow 'respectful' methods for recovery of loans, Finance Minister P Chidambaram said on Tuesday, reports PTI.
"...responsible financing by way of transparency, interest rate rationalisation, respectful recovery procedure must be followed by micro finance institutions," he said while listing the challenges faced by MFI industry.
He was speaking at the Microfinance India Summit 2012.
MFIs in some states especially Andhra Pradesh faced problems on account of use of strong arm tactics for recovery of loans. This also resulted in suicide by some borrowers.
Chidambaram also asked MFIs to verify data on borrowers with credit bureau to avoid multiple borrowing or over indebtedness.
"I will request the micro finance sector to adapt itself to the expectation of public at large, especially, with regard to their code of conduct," he said.
He further said the proposed Micro Finance Institutions (Development and Regulation) Bill, 2012 will provide adequate legislative framework for development and regulation of the sector.
"We are hopeful that the Bill will be cleared by the Standing Committee, then brought to Parliament for passage.
Once the bill is passed, I hope that it will provide an adequate legislative framework for the entire gamut of micro-finance services," he said.
The legislation seeks to empower the Reserve Bank of India (RBI) to regulate the sector and fix interest rates caps on loans provided by them.
The Bill, which was drafted in the backdrop of problems faced by borrowers of MFIs in Andhra Pradesh and other states, also seeks compulsory registration of MFIs with the RBI.
Micro finance -- the business of doling out small loans at usually high interest rates to poor people who are unable to access conventional lending instruments -- has come under intense regulatory scrutiny in the wake of an Act passed by the Andhra Pradesh government.


Two senior police officers suspended, magistrate shifted in the Facebook arrest row

Maharashtra government has suspended Thane Rural's SP Ravindra Sengaonkar and senior police inspector Shrikant Pingle in the Facebook arrest case 

Mumbai: The Maharashtra government on Tuesday suspended two police officers, including a Superintendent of Police, following the row over the arrest of two girls from Palghar in neighbouring Thane district for a Facebook post on the shutdown in Mumbai for Balasaheb Thackeray's funeral, while the judicial magistrate who granted them bail was shunted out, reports PTI.

SP (Thane rural) Ravindra Sengaonkar and senior police inspector Shrikant Pingle have been suspended in the case, state's Home Minister RR Patil told reporters.

He said action has been taken after obtaining legal advice.

"There was no need to charge the girls under wrong sections," Patil said, adding that there was no need to take hasty action (against the girls).

The girls Shaheen Dhada and Rinu Shrinivasan, both 21, were arrested after Dhada had lamented in a Facebook post the 18th November shutdown due to Thackeray's funeral. Shrinivasan had 'liked' the post.

The home minister assured the departmental inquiry would be completed in the shortest possible time.

Patil said Additional SP Sangram Nishandar has been "warned in writing and reprimanded" for dereliction of duty.

"Wrong sections were applied against the girls. There was no need to take hasty action (against the girls)," Patil said.

He said senior officers will probe what charges could be dropped.

Earlier, the Bombay High Court transferred judicial magistrate RG Bagade who had granted bail to Shaheen Dhada and Renu Srinivasan, who were arrested last Monday after the former posted a Facebook status lamenting the 18th November shutdown and the latter "liked" it.

Though Dhada didn't name Thackeray, the local Sena leader complained against the girls and police arrested the duo on 19th November, sparing an outrage.

On 20th November, police arrested the vandals who had damaged Shaheen's uncle's hospital on 18th November, despite her removing the post and apologising that day itself.

The arrest had set off a debate with some legal experts maintaining that instead of enlarging the girls on bail, Bagade should have discharged them from the case as they had been booked under wrong sections.




4 years ago

I think the Bombay High Court has transferred the Magistrate for sending the girls to judicial custody. However, the Magistrate granted them bail later. High Courts decision is a welcome step.

Vaibhav Dhoka

4 years ago

Action on police is JUST and Right,but other department i.e judiciary known for inefficiency DELAYED and therefore DENIED justice for litigants,has as usual escaped without any punishment,a soft punishment in form of transfer.There is no dearth of such magistrates who sell Unlawful ORDERS grant bail on A price.Due to such orders higher courts are unnecessarily burdened.

BSE Sensex, Nifty in a strong upmove: Tuesday Closing Report

Watch whether the Nifty continues to register a higher high and a higher low for the upmove to continue

The market settled near the day’s high on ratings agency Moody’s move to retain India’s rating outlook as stable and the DMK’s decision to support the UPA government in Parliament on the FDI issue. Today for the second trading day the Nifty managed to make a higher high and a higher low. It settled at 5,727, which was its best closing in the last 12 days (including today). We may see a strong upmove on the benchmark subject to a higher high and a higher low. The National Stock Exchange (NSE) saw a volume of 86.22 crore shares and a strong advance decline ratio of 961:481.
The Indian market witnessed a firm opening tracking positive Asian cues and Moody’s reaffirming India’s outlook as stable on the back of the country’s strong economic growth and high savings and investment rates. Markets in Asia were in the green in morning trade on following an agreement for the release of the next tranche of aid to Greece.
Back home, the Nifty opened 23 points up at 5,659 and the Sensex resumed trade at 18,617, a rise of 80 points over its previous close. While the opening figure of the Sensex was its intraday low the Nifty’s low was 5,658, which was also struck in initial trade.
The market soon started on a northbound journey supported by all-round buying amid a news report which said that the DMK would support the UPA government on the FDI issue in Parliament. The gains increased as trade progressed. The deal between Greece and its international creditors which was agreed on Monday resulted in the European markets opening higher today. The optimism was cheered by the local market as well with the Sensex and Nifty extending their gains in the post-noon session.
The benchmarks hit their intraday highs in the last half hour with the Nifty rising to 5,733 and the Sensex scaling 18,863. However, the indices pared a small part of the gains, but settled higher for the second day in a row. 
The Nifty gained 92 points (1.62%) to 5,727 and the Sensex surged 305 points (1.65%) to finish the session at 18,842.
Among the broader indices, the BSE Mid-cap index surged 1.18% and the BSE Small-cap index climbed 0.93%.
All sectoral indices settled in the positive today. The top gainers were BSE Realty (up 3.20%); BSE Consumer Durables (up 3.18%); BSE Fast Moving Consumer Goods (up 2.12%); BSE Bankex (up 1.84%) and BSE TECk (up 1.81%).
Twenty eight of the 30 stocks on the Sensex closed in the positive. The main gainers were Bharti Airtel (up 5.22%); Sterlite Industries (up 3.56%); HDFC (up 2.79%); HDFC Bank (up 2.69%) and Hindalco Industries (up 2.55%). NTPC (down 0.38%) and ONGC (down 0.08%) were the losers.
The top two A Group gainers on the BSE were—Videocon Industries (up 19.99%) and Unitech (up 11.13%).
The top two A Group losers on the BSE were—Hindustan Copper (down 9.97%) and Jet Air India (down 3.27%).
The top two B Group gainers on the BSE were—GEI Industrial Systems (up 19.97%) and Value Industries (up 19.94%).
The top two B Group losers on the BSE were—Kiri Industries (down 17.36%) and Sujana Universal Industries (down 15.55%). 
Out of the 50 stocks listed on the Nifty, 47 stocks settled in the positive. The major gainers were Bharti Airtel (up 4.75%); Jaiprakash Associates (up 4.38%); BPCL (up 4.14%); Reliance Infrastructure (up 3.07%) and HDFC (up 3.01%). Power Grid Corporation (down 1.54%); NTPC (down 0.47%) and Tata Power (down 0.05%) settled at the bottom of the index.
Markets across Asia closed mixed with the Shanghai Composite index closing at its lowest since January 2009 on concerns that Chinese banks’ lending capacities would stifle economic growth. On the other hand, the Greek deal pushed other markets higher on hopes that easing of the debt crisis would boost export-oriented economies of Asia.
The Nikkei 225 gained 0.375; the Straits Times rose 0.25%; the Seoul Composite surged 0.87% and the Taiwan Weighted climbed 0.31%. Among the losers, the Shanghai Composite tanked 1.30%; the Hang Seng shed 0.08%; the Jakarta Composite dropped 0.86% and the KLSE Composite declined 0.60%.
At the time of writing, the key European markets were trading with gains between 0.28% and 0.59% while the US stock futures were mixed with a negative bias.
Back home, foreign institutional investors were net buyers of stocks aggregating Rs163.14 crore on Monday. On the other hand, domestic institutional investors were net sellers of shares totalling Rs195.65 crore.
PVR, which is into film production and distribution, today informed the stock exchanges that it was in talks with the promoters of Mumbai-based Cinemax India to buy the latter’s shares. However, no definitive agreement had been signed, it said. PVR settled 2.94% lower at Rs236.10 on the NSE.
Bangalore-based realty major Puravankara Projects is looking to expand footprint in the rest of the country, mainly in the western and northern regions. The company has set up a separate entity Provident Housing to cater to the premium affordable housing segment, which is looking at acquiring land mainly in Mumbai, Pune, Jaipur and Patna. The stock advanced 1.76% to close at Rs86.60 on the NSE.
Refining and marketing major Indian Oil Corporation (IOC) said it is planning to build a new 15 million tonne refinery in Gujarat as part of its plans to almost double its refining capacity. The company, which already has a 13.7 million tonnes refinery at Koyali in Gujarat, is planning another 15 million tonnes unit in the state due to easy availability of land. The stock settled 1.18% higher at Rs262.50 on the NSE.



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