Bangladeshi Micro-Credit Operators Given More Time To Get Licenses

Mar 2009
Dhaka, Bangladesh , March, 25 2009 - The micro-credit regulatory authority (MRA) on Wednesday gave micro-finance institutions (MFIs) six more months to fulfill required criteria for receiving licenses.

"We've decided to extend the timeframe of issuing license to the MFIs until December 31 this year instead of June 30 for running their operations properly," an MRA senior official told AHN in Dhaka after a meeting with its chairman and the Bangladesh Bank (BB) Governor Salehuddin Ahmed in the chair. He also said the MRA will issue licenses to the MFIs after verification of their submitted documents by the deputy commissioners concerned along with other agencies to ensure authenticity.

The concerned authorities earlier set the criteria for an MFI to have minimum 1000 borrowers involving BDT4.0 million worth of credit as pre-requisite to obtain license.

The MRA has already issued 411 licenses to the MFIs from 4240 applications, which were submitted to the central bank seeking permission for micro-credit operation.

Around 600 applications have been rejected by the MRA for failing to meet the required criteria. The remaining 3229 applicant MFIs are now waiting for licenses.

Each MFI must obtain license as a mandatory requirement of the micro-credit regulatory act to operate in the country.

The government earlier formed an eight-member micro-credit regulatory authority, headed by the BB governor, to issue licenses to all private MFIs for ensuring transparency and accountability.

Source : AHN

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