MACS and Banks offering microfinance not under AP ordinance

Microfinance Focus, Nov 02, 2010: Principal Secretary, Rural Development, Govt of Andhra Pradesh, India has informed all RAs (Regional Authorities) across the state that MACS (Mutually Aided Cooperative Societies) do not come under the purview of the microfinance Ordinance which the state government issued on Oct 15.

In a message communicated to RAs, the Principal Secretary has said that, no entity registered as a mutually aided cooperative under the AP Mutually Aided Cooperative Societies Act 1995 shall be considered as a MFI under the provisions of the Ordinance, provided such mutually aided cooperative is operated and controlled by the members and the profits are retained within the organization.

Further, the message says that no Bank registered with RBI as a commercial bank and engaged in banking operations as their main activity shall be considered as a MFI under the provisions of the Ordinance, provided such Bank has been disclosing to the banking regulator details of any micro finance operations undertaken by the Bank from time to time.

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