FE Report
A total of 132 microfinance institutions (MFIs) have so far faced regulatory action for breaching the existing rules and regulations, officials said.
The Microcredit Regulatory Authority (MRA) took the punitive action against them until March 05 last.
Of the total, 98 lost their operating licences permanently, according to official data.
On the other hand, licences were withdrawn for 34 other temporarily-approved MFIs, the data showed.
Currently, 707 MFIs are registered with the Microcredit Regulatory Authority (MRA) and 128 have got licences from the authority on a temporary basis.
The number of microcredit clients reached 27.58 million in 2016, according to an annual report of the MRA.
"We remind the MFIs to follow the directives of the MRA repeatedly, if they don't pay attention to our directions. Ultimately, the country's central body of the MFIs cancels their licences," a source concerned said.
He said the MRA's main priorities are eradication of poverty, protection of clients' interests and fostering sustainable development of the country by ensuring transparency in microfinance operations and accountability of MFIs.
The MRA scraps licences of MFIs mostly for misusing funds in breach of related rules, he said.
© 2024 - All Rights with The Financial Express
