Microfinance lenders seek law review on capital requirements

Stricter cash reserves and deposit requirements for licensing has affected microfinanciers’ liquidity. [File, Standard]

Microfinance institutions are seeking a revision of the laws and regulations that govern their business to ease the cash reserves and deposit requirements for licensing. 

The lenders argue that the stringent requirements imposed on them by the Microfinance Act and reporting standards make the business environment tougher for them.