New Banking Laws to support micro credit need of the hour : Dr Yunus

Pune, Nov 18: Nobel Laureate Dr Muhammad Yunus today suggested new banking regulations for Micro Financing and Credit to enhance the scope and make banking ''unlimited''.

Addressing a press conference here, Dr Yunus said that new banking laws specially for micro credit were essential for the sector in wake of globalisation and present needs to serve the poor sections of the society.

Giving an analogy, he said that for conventional banks to operate in rural sector keeping within their framework and guidelines become difficult, just as it is difficult for a ''super tanker to enter shallow waters meant for dinghy boats''. ''The architecture and design for the two boats is different meant for different waters but perform the same function that's how banks in micro credit sector can give rise to social businesses and at the same time make money'', he said adding that 'our mission is to create jobs.'' He said that globally the banking system was wrong.''It should be made more inclusive'', he said.

To a query, he said that his bank, the Grameen Bank gave interest at 8.5 per cent a little more than conventional banks to attract borrowers. 'The borrowers are meant to contribute a small amount for savings on a weekly basis and we have committed to giving them pension by giving them an equal amount as pension so that the borrowers are not dependent on their children.

To a query globalisation and on the role of MNC's in taking over businesses, Dr Yunus said that globalisation was here to stay and historically, the world was inching towards it. But the need was to maintain the traditional business through ''partnerships''.

Globalisation is like a 100 lane Highway, but there has to be one safe lane for us to travel, so that we are not eliminated'', he said.

To a question on state support, he said that he felt that taking state support should be the last resort.''Welfare system is like a prison. When difficult situation arise, help is required to get out and help can be given through the public distribution system, this is however not a permanent solution. The government and state cannot solve all problems whether credit or farmer suicides, the solutions have to come from the people'', he said.

Dr Yunus was in the city to receive the first 'Sakal Person of the Year-2007 Award' yesterday at the hands of Union Agriculture Minister Sharad Pawar.

UNI