Microfinance institutions
Buvaneswari
(Querist) 11 June 2009
This query is : Resolved
Respected experts,
some of the Microfinance institutions (MFIs) in Tamil Nadu registered under Company's act or Trust Act that operates as Non banking finance company are undertaking insurance business (i.e. micro insurance). Instead of insuring their clients in insurance companies, they developed their own insurance product specifically to their clients and covering the risk(i.e. called as in house model). As per IRDA's rule, 100 crores capital is must to start insurace business. Is there any legal regulations for the MFIs to carry out microinsurance business? If so, plz tell about the requirements to be submitted by MFIs.
Thanks..
plz experts..Its urgent..
Manish Singh
(Expert) 11 June 2009
at present the Micro Finance Bill, 2006 is pending in the Rajya Shaba and still needs confiration.
there are state's MOney Lenders Act which currently regulates the microfinace activities and each microfinance provider is to be registered under the said act.
RBi has not provided any concrete guidelines on the said issue.
