The Microcredit Regulatory Authority (MRA) has scrapped licences of 54 microfinance institutions (MFIs) during the period from early 2012 to July 17 last because of their inability of operation and non-compliance with related rules and regulations, according to the MRA data.
"Authorities of several MFIs could not operate their entities concerned properly. Their performance of operation was falling day to day. For this reason, they surrendered their licences to the regulator," MRA Director Md Shazzad Hossain told the FE Saturday.
"As per the MRA Act and regulations the MRA has cancelled licences of 54 MFIs for losing their capacity of microcredit operation," he said.
Besides, operational costs of a large number of MFIs are higher than their earnings. As a result, many of them cannot sustain. Ultimately, they will not be able to continue their functioning, he said.
Currently, 694 MFIs are registered and 130 have got licences temporarily from the authority until September 01 last, the MRA data showed.
The MFIs that lost licences include Uttaran Paribar, Profullah Samajik Sangstha, Voluntary Association for Rural Development, Eso Kaz Kari, Shapno Foundation, Society for Urban & Rural Emancipation, Aram Foundation, Asraf Foundation, Socio Economic and Rural Advancement Association, Uzzibon Kalyan Sangstha of Chittagong, Development Association for Rural People, Chetona Samaj Kalyan Kendro of Shariatpur, Community Development Association and Samaj Kallan O Palli Unnayan Sangstha.
The others are Daridra Nibaron Kendra, North Bengal Rural Development Sangstha, Village Disabilly and Development Centre, Programme for Research and Elimination of Poverty, Social Origination for Rural Development, The Good Earth, Integrated Development Association of Bangladesh, Newsun Economic Development and Organization, Community Development Association, Dewanganj Gano Shahajja Sangstha, Gonomukhi Sechchasebi Society, Provati Samaz Kallyan Songstha, Nabarun Bahumukhi Samajik Unnayan Sangstha, Golden Way, Village Economic and Social Development Community, Welfare Efforts (WE), Approach for Community Development Organisation, National Development Society, Foundation for Poor's Progressive Programme, Socio Economic Benevolent Association, Programme for Human Establishment, Socio Economic and Moral Development, Pother Dishari Society, Proshikkhan, Kaz, Samannay Sangstha, Uddayam Bahumukhi Samaj Kallyan Sangstha etc.
rezamumu@gmail.com