Sa-Dhan organises interface on microfinance COC at NABARD

Microfinance Focus, Nov 2, 2010: With an objective to develop a sense of comfort and confidence among the stakeholders with regard to the operations of the microfinance institutions, industry association Sa-Dhan organized an interface on Code of Conduct today at NABARD office, Hyderabad.

According to a statement made by Sa-Dhan to its members few days before, Agenda of the meeting was to reinforce their commitment to COC in presence of the representatives from Govt of AP, RBI and Banks and develop some common minimum commitments in terms of pricings, multiple lending and sharing of information etc. This interface would also be used to request the government to make necessary amendments in the rules of the Ordinance.

In a letter to all its members who are operating in Andhra Pradesh, Sa-Dhan’s General Manager, K. Balasubramanyam said, “The ordinance in Andhra Pradesh has not only created restlessness for the practitioners but also shaken up the whole microfinance industry. Policymakers, regulator and bankers are also wary of the developments.  There are apprehensions of disturbances in operations, arrests and legal actions against the MFI after the 5th of November. Sa-Dhan has been discussing this matter and our work on the COC with the MOF, GoAP and the RBI.”

After 5th Nov. the Andhra Pradesh High Court’s interim relief for microfinance institutions will be lifted and legal actions can be taken against MFIs if found violating the ordinance rulings.

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