Microfinance News Synopsis: FM to go east, take banks along to drive financial inclusion

Microfinance Focus, June 11, 2010: Microfinance News Synopsis brings a compilation of industry headlines broadcasted by other news media from across the world.

FM to go east, take banks along to drive financial inclusion: Financial inclusion and implementation of central government schemes will top the agenda of finance minister Pranab Mukherjee’s June 14 meeting with the chief ministers of 12 eastern states. The government is concerned about the inability of these states to implement the central schemes. “All 12 states are expected to submit their financial inclusion plans for the next two years. State governments are also expected to submit project proposals to avail funds from the Financial Inclusion Fund,” said a finance ministry official. The meeting will be attended by the chief ministers of 12 states and chairmen of all leading public sector banks and financial institutions such as NABARD, SIDBI, IDBI, NHB [Economic Times]

Microfinance Bill skirts crucial issues: Microfinance is now as important as mainstream banking. The present spread is 2.2 million self-help groups (SHGs) covering 33 million poor families, and a cumulative disbursement of Rs 11,400 crore. The annual growth rate is 51 per cent. The actual availability of funds is only a fraction of demand, leaving a huge gap. The robust banking sector of our country failed to provide integrated micro-financial services (including micro-credit and insurance) to the poorest sections. Hence, the economically active among the poor relied on NGOs, societies, trusts and cooperatives for micro-credit.To provide a formal statutory framework to these players, the Government has drawn up the Micro Financial Sector [Hindu Business Line]

Bill Gates offers $10m fund for mobile banking in Haiti: Alongside the billions of pounds worth of aid being pumped into rebuilding Haiti, a new project aims to give Haitians control over their own cash. The Bill and Melinda Gates Foundation has created a $10m (£7m) fund for mobile banking services in the country. Mobile banking is exploding in the developing world, encouraging saving and helping people out of poverty. The Foundation hopes millions will take up the service in Haiti. “Out of the ruins of Haiti’s tragic earthquake, there is an unprecedented opportunity to improve the lives of millions of Haitians and unlock the country’s economic potential,” said Mark Suzman, acting president of the Global Development Program at the Bill and Melinda Gates Foundation [BBC]

Fijians Soon To Pay Bills, Get Paid By Phone: Fiji may be the first country in the South Pacific region to launch mobile money, according to Reserve Bank governor Sada Reddy. Launching the E-Money project in Suva Thursday, Reddy said the need to carry cash will be reduced as people can pay for goods and services through their mobile phones. He noted that through mobile money, people can pay their electricity, water, and other bills from the comfort of their living room or even while out fishing. Government and other agencies he said, can use mobile phones to pay salaries and wages to their employees in Fiji’s remote areas. He said the RBF’s commitment to the E-Money Fiji Project is because “we realize the great potential this development will have [All Headline News]

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