Planning Commission looking into Micro Credit Task Force Report

New Delhi, Mar 9 (UNI) A steering Committee on Micro Finance and Poverty Alleviation set up in the Planning Commission is looking into the Report of the Task Force on Micro Credit to the Urban Poor.

However, it may not be possible to provide any time frame for the implementation of the Task Force recommendations as of now, Minister of State (Independent Charge) for Housing and Urban Poverty Alleviation Kumari Selja told the Lok Sabha today in a written reply.

The major recommendations of the Task Force are: Providing credit on flexible terms to the urban poor for their small and petty economic activities.

A comprehensive insurance scheme at an all India level covering all urban poor should be designed since they are most vulnerable lot in the society.

Creating an apex organization for the identification, organization and promoting the Self Help Groups (SHGs) capacity building and linking the Groups with banks and providing refinance.

Government intervention by providing equity support to this apex financing organization as well as further support to Micro Finance Institutes (MFIs).

The Task Force has also called for putting in place a regulatory mechanism to have a proper check on the activities to the NGOs and MFIs active in this field.

It also laid emphasis on capacity building of urban poor, Banks, NGOs and other stakeholders, the Minister said.

Creating mass awareness regarding the unorganized sector and micro-finance through media, TV and other publicity awareness is also a must for making the micro credit a success, she said.

UNI