InfoAnda - Indian activists welcome crackdown on microfinance firms

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Chinese workers abandon Beijing protest march: state media | 4 April 2009
Dan Brown moves to Washington for new thriller | Entertainment | | 9 July 2009
Indonesia to stop sending workers to Saudi Arabia after maid’s beheading | 24 June 2011

Japan core consumer prices drop record 2.4 pct | 29 September 2009

Forum Views () Forum Replies ()

Read more with google mobile : Indian activists welcome crackdown on microfinance firms

Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Singapore Asia Pacific World Indian activists welcome crackdown on microfinance firms AFP - Thursday, December 16 Send IM Story Print Indian activists welcome crackdown on microfinance firms Slideshow: Full Photo Coverage: Business & Economy HYDERABAD, India (AFP) - – Social activists welcomed Wednesday a new law in a southern Indian state cracking down on operations of microfinance firms, saying they hoped it would help stop exploitation of poor borrowers. The legislation, passed late Tuesday in Andhra Pradesh state, hub of India's microfinance industry, is aimed at curbing heavy-handed debt collection and steep interest rates that have provoked a backlash against the loan system. "The act of the government in trying to the regulate the industry is very welcome," said Ravi Rebbapragada, chief executive of Samata, or Equality, an Andhra Pradesh non-governmental organisation that works with tribals. However, critics said the measure could ruin a business concept pioneered by Nobel Peace Prize winner Muhammad Yunus to provide crucial credit for millions of poor villagers, many of them women. Shares of India's largest microfinancier SKS, which staged a highly successful initial share offer in August, fell by 3.5 percent to 719 rupees, pushing its stock down more than 50 percent from a September peak. SKS, which conducts 27 percent of its business in Andhra Pradesh, had earlier warned the measure could have a "high" impact on earnings. The law "will make it impossible to operate in Andhra Pradesh," Vijay Mahajan, head of Microfinance Institutions Network (MFIN), which represents India's 44 leading microlenders. The law obliges recovery agents to collect debts at district government offices rather than at home in a bid to stop coercion and also says debts can be only collected once a month rather than weekly. "The new system of collecting loans (at designated centres) will make it tougher for borrowers to repay loans as they do not have an organised saving pattern," said Santosh Singh, financial analyst at Execution Noble. The law contains penalties of up to three years jail for using arm-twisting recovery tactics and insists all microlenders be registered. It says annual renewal of their registration will depend on their track record. It adds the amount of interest paid cannot exceed the loan principle in a bid to curb interest rates that can exceed 30 percent. "This will be good if it stops exploitation but it is important this measure does not dry up credit to those who need it most," said Amar Shivaji, chief executive of Chaitanya Society which works with weavers in Andhra Pradesh. Andhra Pradesh moved to rein in microfinanciers after claims in October high rates and aggressive debt collectors had caused 85 suicides. SKS and other industry players admit there are "rogue" elements that must be checked but says they have contributed hugely to easing poverty and add their interest rates reflect the cost of administering loans in remote areas. The whole debate over microlending has become "politicised" in Andhra Pradesh with politicians "fomenting borrowers not to repay," said Mahajan. "What you see is mass default" in the state, said Mahajan, adding as a result of the controversy, microlenders' loan recovery rates in Andhra Pradesh are running at five to 10 percent. "The microfinance industry could fold up in Andhra Pradesh and you could see a domino effect across the country," he added. "If this sector closes, you will see people be driven back to the humiliation of moneylenders" who are known to levy interest rates as high as 100 percent. Recommend Send IM Story Print Related Articles US-BUSINESS Summary Reuters - 1 hour 18 minutes ago More US-Canada auto output hit by storm effects Reuters - Thursday, December 16 EXCLUSIVE-UPDATE 3-Starwood to build new China Sheratons Reuters - 2 hours 37 minutes ago Obama administration sues BP, others over Gulf spill Reuters - 30 minutes ago Spain receives debt warning before EU summit Reuters - Thursday, December 16 News Search Top Stories Tame US inflation backs Fed spending plan Irish parliament narrowly backs massive bailout Rating agency warns of Spain credit downgrade Fed likely to keep rates low despite tax cut deal ECB calls for bigger eurozone emergency fund More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Record profits forecast for airline industry Bernard Madoff will not attend son's funeral: lawyer More Most Viewed » NASA finds new form of life... on Earth Defiant Obama defends tax cuts, eyes 2012 More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Entertainment Photos Yahoo! News Network Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

Other News on Thursday, 16 December 2010
News
Iraq gets U.N. greenlight for civil nuclear program
Man kills four in Spain shooting rampage
Red Cross paints grim Afghan picture before review |
US Air Force blocks news sites posting WikiLeaks
Iran suicide bombings kill 39 during ceremony
Riots expose Russia's problems ahead of World Cup
News
Stem cell transplant 'cures' HIV: study
Turkish army plot trial to revive tensions
Iraq gets U.N. green light for civil nuclear program |
Irish parliament narrowly backs massive bailout
Survey names Facebook best place to work
News
South Sudanese shrug off home hardships to vote
Tame US inflation backs Fed spending plan
About 200 Islamic extremists in Sweden: intel
Nokia, Siemens to sell stake in telecom venture: report
Berlusconi seeks fresh start after bitter Italy vote |
Iraq business elite flourish in Jordan safe haven
Scarlett Johansson, Ryan Reynolds call it quits
Atos shares jump on Siemens deal for IT giant
Russia blasts Britain for paranoid spymania |
Egypt's Bedouin smugglers ply arms trade to Gaza
Social networking sites can help prevent pandemics: experts
Kenyan ministers named as suspects in vote violence |
Afghan armed groups interfere in Red Cross work
Violence, protest plans stir Ivorian conflict |
Japan government will not appeal court defeat over dyke
Thailand's Red Shirts to step up activities: new head
Ponting clinging to captaincy
Facebook founder named Time's 'person of year'
Management Tip of the Day: Ways to manage your online image
Tokyo bill set to restrict 'extreme sex' manga
Scarlett Johansson and Ryan Reynolds to divorce
Police stop religious gatherings in Indian Kashmir
News
HP wins $1.4 billion outsourcing contract from E.ON
Nokia, Siemens to sell stake in telecom venture: report
WikiLeaks hactivists look to improve attack software |
Nokia Siemens buy of Motorola network ops wins EU nod
China's Shaolin Temple plans to open branch in Taiwan
France's Versailles palace to host luxury hotel
Inmates' cook-off serves up cheer in Peru prison
Samsung buys local medical equipment maker
Indonesia seeks jail for 'blasphemous' American
Fiennes directorial debut, Wenders 3D pic at Berlin fest
Women wrestling in the Bolivian Andes
Bubble fears as Taipei property prices hit record
Austerity bites for elderly in Britain
News
Great Firewall no obstacle for China's Facebook game makers
America's poor face bleak Christmas
Moscow starts ruble-yuan trading
Spain's BBVA bank takes step into Indian banking
News
Indian activists welcome crackdown on microfinance firms
Sandra Bullock tops People's most intriguing list |
China foreign direct investment up 38 percent in November
News
Film critic Ebert to debut TV show in January |
List reveals top places for spotting celebrities |
Obama to unveil Afghan strategy review
YouTube wants Web show maker Next New Networks: report
UK judge to rule on bail for WikiLeaks's Assange |
China PM seeks to ease political tensions with India |
Asylum seeker deaths pressures Australia minority government |
News
Lebanon says it uncovers Israeli spy devices |
Man kills four in Spain shooting rampage
Cuba claims it made economic strides in 2010 |
German doctors declare cure in HIV patient |
Lebanon says it uncovers Israeli spy devices
Afghan war review shows tilt to hitting militants
US troubleshooter hopes to 'make a difference' in N.Korea
Twitter financing values company at $3.7 billion |
Nepal plane crash kills all 22 on board: police
Analysis: Gorilla Glass could become Corning's King Kong |
YouTube wants Web show maker Next New Networks: report |
News
Approval of Internet traffic rules likely: analysts |
US-ENTERTAINMENT Summary
EBay acquires its mobile application developer |
Baidu sees growth rate slowing in 2011 |
Aretha Franklin reported to have pancreatic cancer
Toshiba sees LCD profit on smartphone boom |
'Boo Boo the bear is voice of reason': Timberlake
TV watchdog targets depiction of teen girls
Italian court increases sentences for 23 CIA agents
US-TECH Summary
U.S. seeks to build WikiLeaks conspiracy case
Obama, on eve of review, cites Afghan war progress
Approval of Internet traffic rules likely: analysts
Olivia Wilde transforms herself for Tron: Legacy |
Aretha Franklin released from hospital |
Five lessons of the fall TV season |
Sesame Street ready to return to China |
TV watchdog targets depiction of teen girls |
Star power of little use in How Do You Know |
Susan Boyle's Gift keeps on giving atop chart |
Dozens feared dead after refugee boat smashes on Australian
Taiwan mulls China investments in local LCD firms -paper
Sarah Jessica Parker joining New Year's Eve |
US and China sign trade deals, Beijing seeks more
Hyundai Steel export prices rise; iron ore costs more
News
Sandra Bullock tops People's most intriguing list |
Korea Hot Stocks
Mercosur inks tariff deal with India, others
News
California mom sues McDonald's over Happy Meals
Bruni says Sarkozy often thinks about second term |
Crash of Taiwan air force plane kills its 2 pilots
Seoul shares rangebound;foreign buying,U.S. data help
News
Sarah Jessica Parker joining "New Year's Eve"
News
WRAPUP 1-NZ confidence data points to gradual recovery
Global Weather-Asia-Celsius
News
News
Five lessons of the fall TV season
NZ 2013 govt bonds yield 4.10 pct at tender
News
US and China sign trade deals, Beijing seeks more
Star power of little use in "How Do You Know"
Seoul shares open lower as euro zone weights
Susan Boyle's "Gift" keeps on giving atop chart
NZ manufacturing perks up in November
Australia resumes hunt for refugee boat victims, toll rises
Toshiba plant to make LCD panels for Apple: report
Analysis: Gorilla Glass could become Corning's King Kong
Twitter valued in billions as popularity climbs
EBay acquires its mobile application developer
eBay buys mobile software maker Critical Path
WikiLeaks hactivists look to improve attack software
Study sees 1.2 billion illegal UK song downloads in '10
Human rights court condemns Ireland over abortion
Hochtief shareholder to sell up to Spain's ACS
News
Afghan violence kills 18 as Obama reviews war |
Attacks in Afghanistan kill 3 kids, NATO soldier
Bing search upgrades include Facebook 'likes'
Heavy firing in Ivory Coast's Abidjan before march |
Putin issues chilling message to tycoon Khodorkovsky
News
Assange arrives in London court to hear bail fate
Sweden probes blasts, no new threat level |
Europe battles to shield the euro for good
France calls for restraint in Ivory Coast
Old catching up to young on US Internet: study
More than 1,000 held in Russia amid ethnic tensions
News
Square Enix slashes outlook, delays game launch
Putin talks up recovery, slams ethnic violence |
Facebook face recognition finds friends in photos
Kenyans march to protest ICC's naming of suspects |
News
South Korea to hold live fire drill on disputed island |
Richardson in N.Korea, hopes to 'make a difference'
News
Europe rights courts faults Ireland on abortion ban |
Israel can't defeat Hezbollah: Israeli expert |
China PM on India charm offensive
American man gets jail time for blasphemy
Indonesian Christians uneasy over Islamic hard-line group's overture
22 killed in Nepal plane crash
Taipei 101 New Year's fireworks to set record
Australia make horror start in third Ashes Test
CNN host Larry King hands over his vintage microphone
All 22 passengers and crew dead in Nepal plane crash: police
Missing Nepal plane found, all 22 aboard killed
Facebook sales likely to hit $2 billion in 2010: report |
Sesame Street ready to return to China
Large yuan swings will hurt China economy: media
News
Analysis: California calling European tech start-ups |
Asiana Airlines mulls selling stake in Korea Express
Start-up sector seen thriving on tech advances |
KIA recovers from crisis, ups production in Slovakia
Nokia expands patent row with Apple in Europe |
News
S.Korea's bank levy to exclude local debt -report
Square Enix slashes outlook, delays game launch |
Currency swaps may be included in S.Korea bank levy
Seoul shares dip on autos, euro zone worry
News
Study sees 1.2 billion illegal UK song downloads in '10 |
News
King's Speech, Fighter lead SAG film nominees |
Piers Morgan flying flag for UK in King slot |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01