MRA rules out ban on microcredit savings of NGOs

FE Team | Published: October 31, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Microcredit Regulatory Authority (MRA) Vice-Chairman Khandakar Muzharul Haque said Tuesday the authority is aware of the flexibility and innovative culture of the non-government organisations (NGOs) and gave an assurance to all concerned that such operations and practices would not be affected by MRA rules.
"Savings programme of the microcredit group members would, by no means, be hindered. But it would not be appropriate to permit savings from depositors of large amount with business motive, as such depositors do not belong to the poor target group of microcredit programme," he said during a meeting with the Federation of NGOs in Bangladesh (FNB), CDF and INAFI on the day at the MRA office.
He assured the representatives of the non-government organisations (NGOs) at the meeting that the draft rules of the MRA for the NGOs would be discussed with them before these are finalised, said a press release of the FNB.
Savings of the microcredit members and other issues related to microcredit NGOs were discussed in details during the meeting.
The NGO representatives explained the need for, and importance of, the savings of the poor group members for their future security.
FNB Chair Dr. Muhamad Ibrahim said that the pro-poor programmes with innovative culture of the NGOs developed over three decades should not be questioned in view of the activities of some new entrants in the field. He said keeping in view of the different structures of the NGOs due to their diversity and uniqueness, their transparency and accountability must be ensured so that some elements in 'NGO grab' with other motive cannot pollute microcredit programmes and the NGO sector.
INAFI executive director Atiqun Nabi and board member Emranul Haque Chowdhury, CDF executive director Farid Uddin, and board member Mosharaf Hossain, FNB director M Tajul Islam and MRA joint directors Leela Rashid and Sajjad Hossain were present at the meeting.