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Micro Finance
Institutions Network (MFIN) is a self-regulatory organization
(SRO) of NBFC MFIs that aims to work with regulators to promote
microfinance to achieve larger financial inclusion goals. MFIN has
also defined a Code of Conduct which focuses on fair practices
with borrowers including promoting transparency, fixing overall
lending limits at client level, data sharing, recruitment
practices, whistle blowing and enforcement mechanisms. Members
have committed to communicate interest rates on reducing balance
method and other charges clearly to members while following fair
recovery mechanisms. A whistle blower policy allows violation of
Code by any member to be reported to the Enforcement Committee
which would investigate and take action against the erring MFI. An
Ombudsman is also being appointed for any appeal against the
Enforcement Committee decisions and the final action in case of
continued violation of the code would be cessation of membership
of MFIN for such erring member.
MFIN is supported by
Omidyar Network, a philanthropic investment firm, and the
International Finance Corporation (IFC), a member of the World
Bank Group. Omidyar Network is funding the project to support MFIN
in its above efforts. IFC is providing advisory services and
technical consultancy to Alpha in its effort to get the credit
bureau services being made available to the MFI sector.
Equitas Micro Finance
India Private Limited is a founder member of MFIN.
web site : www.mfinindia.org
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