NGOs oppose proposed Micro-Finance Development Bill,2007

Jaipur, May 14 (UNI) A number of NGOs will meet here on May 19 to demand amendments in the Micro-Finance Development and Regulation Bill, 2007, terming it ''anti-women, anti-poor and highly detrimental for the Self-Help Group (SHG) movement, which has been a vibrant initiator of social change in the country.'' Voicing their protests against the bill, members of PUCL, Bharat Gyan Vigyan Samiti, Janwadi Mahila Samiti and others said at a press conference here today that the Bill tabled in the Parliament on March 20 this year and pending before the Parliament Standing Committee, ''lacks balance, revealing its profiteering motive when it should be a protective legislation.'' Kavita Srivastava of PUCL said the Bill only focuses on the financial aspect and totally ignores the social aspect of the SHGs, thus weakening the movement, which has been responsible for upliftment of poor and deprived women.

The bill nowehere mentions women's empowerment as they are the primary client of micro-finance sector and comprise more than 15 crore members. The Bill is silent on the role of SHGs in enabling empowerment, instead divesting women of the role to manage their own resources in the form of thrift and denying them their autonomy in micro-finance operations, she said.

The bill insists on transferring of not less than 15 percent of profit each year to the reserve fund to be kept as unencumbered securities. ''This makes way for NGOs to become profit motivated rather than service oriented to the needs of the communities,'' MsSrivastava said.

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