Financial Inclusion Conference - Sa-Dhan

SESSION - 7F i n a n c i a l I n c l u s i o n C o n f e r e n c e - 2 0 1 2“The First Mile Walk into the Financial System”microfinance. She explained that the guidelines seek to increase transparency andmake MFIs soundly governed and managed organizations attractive to investors inthe long run. At the same time, the directions also try to address the concernsrelated to service delivery and consumer protection. She also said that the RBI isvery keen that the industry associations take a greater role in ensuring complianceof MFIs with the regulatory guidelines. While the RBI was aware of the need toprovide thrift in far flung areas of the country, she felt, it will have to take a call onhow such product can be operationalized.Mr Anurag Jain, Joint Secretary, DFS, Ministry of Finance hoped that themicrofinance Act will provide the much needed framework for the sector. He saidthat the way this act has come about, it has been ensured that suggestions from allstakeholders have been duly considered.“As far as government is concerned, for us financial inclusion is a topmost priority and weare also clear that multiple channels are required for financial inclusion.” – Anurag JainMr Vijay Mahajan, Chairman, Basix acknowledged the fact that all the keystakeholders of the sector including the regulators have a consensus on the wayforward. However, he also expressed his concern over unnecessary interventionsof state governments, which can have and have had adverse effect on microfinancegrowth.Responding to a question whether a central act will over-rule the AP-MFI act, MrUmarji said that there are constitutional provisions about how any inconsistencybetween state law and centre law can be dealt with. He said that there is a distinctprovision that if there is a union law enacted by the parliament, the state law isinvalid if it is on the same subject. Mr Jain added that finally somebody would haveto challenge the state law in a court of law.38