Microfinance News Synopsis: RBI pushes financial inclusion

Microfinance Focus, June 3, 2010: Microfinance News Synopsis brings a compilation of industry headlines broadcasted by other news media from across the world.

RBI pushes financial inclusion: To give a boost to the financial inclusion drive started by the banks, the Reserve Bank of India (RBI) has constituted four working groups that will help identify issues and suggest probable solutions in different areas of operations. The four groups have been set up after deliberations with the finance ministry and banking industry. The first group, which is being headed by the Indian Banks Association (IBA), will look into the technical issues involved in setting up of micro ATMs in areas with population of 2,000 people and above [Indian Express]

North SACCOs get sh4b govt boost: A total of 44 savings and credit cooperative organisations (SACCOs) in Acholi and Lango sub-regions have received sh4.5b in loans from the Uganda Microfinance Support Centre under the finance ministry. The money is meant to boost people’s household income and fight poverty under the Prosperity-for-All programme. According to the Gulu zone financial service officer, Jesca Lwanga, however, some areas lack viable SACCOs that can be entrusted with huge sums of money. “Some of the institutions have poor records which makes it difficult to lend them money,” Lwanga said [New Vision]

African insurers take firm stance against unethical practices: Determined to move the insurance industry forward, stakeholders in the African market have resolved to deal decisively with unethical practices they noted remained the major drawback of the industry in its quest to build capacity. Such practices as rate undercutting, premium purchase, undermining of each other, according to them, have plagued the industry over the years and have contributed to low capacity, low profitability, poor claims settlement and generally low image for the industry in the continent. Rising from the recent 37th annual meeting and general assembly of the African Insurance Organisation (AIO) held in Banjul, The Gambia, stakeholders involving insurers [Microfinance Africa]

Group to Tackle Grassroot Poverty: The Union for the Survival and Sustenance of Microenterprises in Nigeria (USSOMEN) has said the union aims to activate the consciousness of the grass-root people so as to fight the increasing rate of poverty. Speaking at its recently held pre-inaugural meeting in Lagos, the union said is coming at a time of economic recession that has left adverse and negative effects on the micro sub-sector of the economy. “Apart from the microfinance banks that are under the supervisory purview of the Central Bank of Nigeria, CBN, other informal financial institutions like thrift collectors, NGOs, co-operative societies, etc [All Africa]

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