THE MICRO FINANCE INSTITUTIONS (DEVELOPMENT AND REGULATION) BILL, 2011
A BILL to provide access to financial services for the rural and urban poor and certain disadvantaged sections of the people by promoting the growth and development of micro finance institutions as extended arms of the banks and financial institutions and for the regulation of micro finance institutions and for matters connected therewith and incidental thereto.
WHEREAS the banking system has achieved significant growth in terms of average population per bank office and has been able to reduce the levels of credit gaps in the economy;
AND WHEREAS inspite of such growth many of the poor households still do not have access to basic financial services such as savings, credit and money transfer and the financial exclusion faced by such people results in discrimination and denial of equal opportunities to them;
AND WHEREAS micro finance sector is engaged in providing credit and other financial services to the poor households and their micro enterprises as an extended arm of the banking system;
AND WHEREAS micro finance sector lacks a formal statutory framework for its financial activities;
NOW THEREFORE it is expedient to provide a formal statutory framework for the promotion, development, regulation and orderly growth of the micro finance sector and thereby to facilitate universal access to integrated financial services for the unbanked population.
BE it enacted by Parliament in the Sixty Second Year of the Republic of India as follows: –