My View on "Finmin wants RBI as sole regulator for MFIs":
It is a matter of comfort that when briefed properly Finance Ministry views issues with an open mind and shows signs of a pragmatic approach in solving problems. Certain ‘subjects’ in the concurrent list, at least to the extent they relate to financial sector and economic development need a review. MFIs and cooperative banks and several other players in the financial sector try to get the best of both the worlds and get out of standard regulatory norms applicable to the business they do. The present thinking that Reserve Bank should have regulatory responsibility on all financial institutions augurs well for better management of the financial institutions. At a time when we are talking about BCs reaching out to villages not covered by banks, RBI’s outreach cannot be flagged as an issue for moving away from regulatory responsibility. Though protected with the bureaucratic insulation that it ‘cannot be a pre-condition’, Finance Ministry has offered to strengthen RBI for improving its capacity.
- M G Warrier, Mumbai
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