Micro-credit regulator re-fixes MFI fees for customers

The micro-credit regulator has re-fixed different types of fees for the country's microfinance institutions (MFIs).
According to a circular issued this week, an MFI cannot charge a customer more than Tk 25 for admission, record book, the application form for credit etc in place of the previous Tk 15.
The minimum charge of admission fee in an MFI is Tk 10, for record book it comes to Tk 10, and the application form for credit requires Tk 5.
MFIs will have to use Tk 200 non-judicial stamps for undertaking during the approval of new credit instead of the earlier Tk 50 non-judicial stamps.
Microcredit Regulatory Authority (MRA) director Monoj Kumar Bishwash said the fees have been increased for the first time after the formulation of the authority.
The circular will come into effect soon.
Currently, there are more than 20 million clients in 732 MFIs under MRA supervision. The largest MFI Grameen Bank is under Bangladesh Bank watch.
According to MRA statistics, the sector has created direct job opportunities for over 110,000 people; 82 per cent of them are males and 18 per cent females.
Of the MFIs operating across the country, only 5 are very large, 21 are large, 115 are medium, and 570 small.
The country's first microfinance institution - Bangladesh Rural Advancement Committee (BRAC) - was established in 1972, following which microfinance activities had started in Bangladesh.
With a view to bringing the NGOs-MFIs under a regulatory framework, the government in July 2006 enacted the Microcredit Regulatory Authority Act (Act No. 32 of 2006), which became effective from August 27, 2006.
Under this Act, the government established the Microcredit Regulatory Authority (MRA) to ensure transparency and accountability of micro-credit activities of the NGOs-MFIs in the country.