Don't use microcredit funds for foreign trips Regulator asks MFIs

The Microcredit Regulatory Authority (MRA) has instructed the micro-finance institutions (MFIs) not to use the fund meant for microcredit for overseas travel of its high officials, including the CEOs.

In a circular issued recently, the regulator also suggested avoiding unnecessary foreign trips in order to save money.

The MFIs were also asked to update the regulatory body on foreign tours of their officials and share detailed information about the person concerned so that the MRA can maintain smooth communications with them.

The restrictions came against the backdrop of a breakdown in communications between the MRA and the MFIs.

The regulator found that a number of CEOs of the MFIs often stay abroad. In their absence, officers concerned run the show. As a result, normal communications between the MRA and the MFI concerned get hampered.

Besides, the board of directors of the MFI concerned often remains unaware of the CEO's travel abroad, according to the MRA.

As of November 07, 2018, some 701 MFIs have been registered with the MRA and 114 institutions were operating on a temporary basis as on October 03, 2018.

Credit disbursement by the registered MFIs stood at Tk 787.67 billion at the end of June 2016 -- a growth of 24 per cent over the previous year.

The number of microcredit clients was 27.58 million in 2016, according to the latest annual report of the MRA.

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