MRA asks MFIs to take prior approval for changing address

Micro Finance Institutions (MFIs) have to take prior approval if they change the address of head office of the credit-lending non-government organisations.
The Microcredit Regulatory Authority (MRA) recently issued a guideline in connection with the addresses of their member MFIs directing them to formulate guidelines for branch expansion process.
"Recently we found many member MFIs changed their address of head offices without informing us, we could not find them in need," Md. Shazzad Hossain, Director of MRA told The Financial Express.
He said as a regulator MRA wants this issue to put in order.
According to new circular regarding address, all MFIs have to submit their addresses of head offices and branch offices to the MRA.
"MFI-NGO can change their addresses by taking prior approval. In case of branch offices they have to submit addresses within one month of changing," it says.
The MFIs also have to inform their clients and other stakeholders of changed addresses.  
According to MRA, around 60 MFIs submitted their addresses after issuance of the circular last month.
The MRA is the central body to monitor and supervise microfinance operations of NGO-MFIs in the country.
Currently, 730 MFIs are registered with the MRA. These registered MFIs are serving around 40 million out of the country's 160 million people.
With a view to bringing the NGO-MFIs under a regulatory framework, the then government in July 2006 enacted the Microcredit Regulatory Authority Act, 2006 (Act No. 32 of 2006), which became effective from August 27, 2006.
Md. Shazzad Hossain said these rules are already in the Microcredit Regulatory Authority Rules 2010. But MFIs have not been complying with rules.
'If they do not comply after this circular, MRA will take action according to the law," he added.
    bdsmile@gmail.com