Microfinance Conference Concludes

The two-day national microfinance conference organised by industry chamber FICCI and Sa-Dhan, which commenced on March 17, 2010 at Hotel Ashok, New Delhi, concluded yesterday. The conference was attended by R. Gopalan secretary, department of financial services, ministry of finance, Dr. Montek Singh Ahluwalia, deputy chairperson, Planning Commission, Jayshree Vyas, Salman Khursheed, minister for corporate affair, Jyotiraditya Scindia and many others.

During the conference various aspects related to microfinance and the development it can bring about were discussed. Dr Montek Singh Ahluwalia observed that the UIDIA (The Unique Identity Authority of India) will go a long way in providing the poor with a level playing held, considering how they are overburdened with the high rate of interest. Given that the valuations of MFI’s are high and the default sector are low, he said that the government expected interest rates in MFI sector to decline. He also said that government welcomes and strongly supports the idea of having a strong microfinance sector. 

Salman Khurshid, minister for corporate affairs, remarked that the proposed equal opportunity commission would bring under its ambit different groups. He looked forward to large up scaling of credit, Once minority development Finance Corporation is reformed, pointing to the controversy around sharia-compliant banking, Kursheed remarked that India should be ready to celebrate and develop the diverse banking models.

R Gopalan, secretary, department of financial services, ministry of finance, said, “You can enter into the pension area. You should also look at creation of micro enterprises and create clusters of activity, which can be funded by MFIs.”

Minister Jyotiradiya Scindia advocated a path of progress not just for microfinance inclusion, but also for the progress of millions with equal opportunities. He shared his experience relating to the impact of financial inclusion among the traditional workers in Chanderi village.

Sa-dhan is an association of community development finance institutions with 234 members in India.