MRA to issue new licences in 37 districts

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Badrul Ahsan Microcredit regulator has decided to issue more licences to microfinanciers enabling them to serve areas not covered by the financial services for the needy, a high official said. Last month, the Microcredit Regulatory Authority (MRA) has decided to invite applications from the interested organisations to minimise the gap between demand and supply of microfinance, the official said. The decision came at its October board meeting presided over by Chairman of MRA and Bangladesh Bank Governor Dr. Atiur Rahman. MRA officials said a number of microfinance institutions would be allowed to operate microcredit activities in 37 districts of the country where such activities are small in size. "Considering the imbalance in microcredit disbursement in different corners of the country, we've decided to issue new licences in more than 30 districts," Md Shazzad Hossain, a director of MRA, told the FE. "After commissioning an intensive study on demand and supply of such funds across the country, we have taken the decision to minimise the gap and to promote and foster sustainable development of microfinance sector through creating an enabling environment for NGO-MFIs in Bangladesh." Mr Hossain added. "The initiative would create a balanced, conducive and healthy environment in the microfinance sector of the country and also eradicate poverty as well as foster sustainable development of the country," he added. The Microcredit Regulatory Authority (MRA) was established by the government in 2008 under the "Microcredit Regulatory Authority Act 2006". MRA is the central body to monitor and supervise microfinance operations of NGO-MFIs. Licence from the Authority is mandatory to operate microfinance operations in Bangladesh as an NGO. According to the information of MRA, it has so far issued 600 licenses to different institutes to operate activities of micro finance in the country and some one hundred and fifty applications are under process of judgment for approval.