Govt. of Orrisa may issue guidelines for microfinance institutions

Microfinance Focus, Oct 28, 2010:  Following the foot-steps of Andhra Pradesh government which issued an ordinance to regulate the microfinance institutions in the state, the government of Orrisa is also planning to issue guidelines for its MFIs soon.

Microfinance Focus has learnt that the state government will be holding a consultation meeting with MFIs on November 4^th and will probably issue a set of guidelines for MFIs after the meeting. The guidelines would mainly focus on interest rates of MFIs and their weekly collection methods.

Government of Orrisa, according to sources is looking forward to promoting SHG (Self-Help Group) based MFIs in the state. There is also a concern among Orrisa based microfinance institutions that MFIs which are coming from outside the state are not adopting healthy practices and the entire sector is getting affected because of them.

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