New Delhi: State-run Power Finance Corporation (PFC) today said it has signed an agreement with the Nuclear Power Corporation of India (NPCIL) for providing financial assistance, reports PTI.
"The company has signed a memorandum of understanding (MoU) with NPCIL for offering financial assistance to it for its new power projects as well as renovation, refurbishment arid life extension projects," the company said in a filing to the BSE.
Power Finance Corporation is a state-run company, which finances power projects in the country. Besides it is a nodal agency for implementing Ultra Mega Power Projects (UMPPs) in the country.
NPCIL, the sole player in nuke segment in India, is setting up nuclear power generation projects in the country.
New Delhi: The Telecom Regulatory Authority of India (TRAI) today floated a consultation paper on making mobile banking easily accessible and more secure for users, reports PTI.
The consultation paper by TRAI has sought comments from the operators on how to make basic financial services easily available through mobile phones.
The regulator has sought views on methods of communication on mobile network (GSM and CDMA) that would be suitable for enabling financial transactions through mobile phones and parameters to be defined to ensure timely delivery of information.
Further, the security requirement using the method proposed by service providers is for five basic transactions - no-frills account opening, cash in, cash out, checking balance and money transfer.
The National Sample Survey data reveals that 51.4% of nearly 89.3 million farmer households do not have access to any credit either from institutional or non-institutional sources.
A large percentage of rural population does not have a deposit account, which means that they do not have access to even basic financial services.
Around 209 million rural mobile subscribers far outstrip bank account holders in rural areas. Access to basic financial service continues to be an unrealised dream for millions of our citizens.
"With an aim to utilise fast growth of mobile telephony in rural and remote areas and mobile banking is seen as integral part of banking services," TRAI said.
The exponential growth of telephone services as well as improved technology has opened the door for the mobile phone to be used as an instrument for banking operations.
Service providers are requested to send their comments by 23rd November, TRAI added.
New Delhi: Faced with heightened regulatory scrutiny, many microfinance institutions (MFIs) in the country are now exploring different ways, including the debt route, to meet funding requirements, reports PTI.
A number of micro lenders, especially small sized, are facing credit crisis as state-run as well as some private sector banks are not lending funds to them in the wake tighter regulatory scrutiny, industry experts told PTI.
"MFIs need diversified routes to get credit and have been exploring various funding sources. In the backdrop of recent controversies in the sector, MFIs are facing some tighter norms and have been looking all the other means of means, including equity and debt," Microfinance Institutions Network (MFIN) chief executive Alok Prasad said.
MFIN is a self- regulatory group of NBFC MFIs working to promote microfinance sector in the country.
Market sources, who did not want to be identified, said many banks have almost stopped giving credit to MFIs (but not across the country) and consequently they are now forced to look for other ways of funding, like selling non-convertible debentures.
The country's largest MFI SKS Microfinance, however, said it does not face any credit problem. "We are fine. We don't have any issue," a SKS spokesperson said.
According to media reports, the Hyderabad-based two MFIs - Share Microfin and Spandana Spoorthy - have put on hold their plans to raise funds via initial public offerings (IPOs) due to recent upheavals in the sector.
However, worried over recent upheavals in the MFI sector on account of high interest rates small lenders charge and their strong-arm loan recovery tactics, many players have put on hold their plans to raise funds through the capital market route and now are exploring other avenues.
After a Rs1,600 crore successful IPO by the Vikram Akula-founded SKS Microfinance, some leading microfinance firms were mulling to hit the capital market.
The microfinance sector in the country has faced heightened regulatory scrutiny in recent weeks. The ministry of finance has recently advised public sector banks to monitor lending rates of MFIs.
In addition, the government of Andhra Pradesh has passed an ordinance that significantly enhances regulatory control on MFIs in the state, reflecting the concerns regarding what the provincial government perceives are high interest rates being charged by the MFIs, and the coercive means of recovery they adopt.
Additionally, the Reserve Bank of India (RBI) has initiated a review of the priority sector status that is currently being accorded to bank lending to the MFI sector. The RBI has also announced formation of a committee to assess MFI functioning.
MFI sector's dependence on Andhra Pradesh is high, since the state's share of loans outstanding represents nearly 35% of the sector's total portfolio.
It is possible that any potential change in regulations may impact the sector's growth, access to funding, asset quality, and operational costs over the near-to-medium-term.
According to rating agency Crisil, MFIs are the powerful mean to extend formal credit services to India's under-served rural poor. MFIs help raise the income levels and standards of living of the poor, thus, contributing to financial inclusion.