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Business Standard
4 hours ago
- Business
- Business Standard
Microfinance in vicious cycle of debt, high rates, warns RBI deputy guv
India's microfinance sector is facing a "vicious cycle" of borrower over-indebtedness, high interest rates, and coercive recovery practices, Reserve Bank of India (RBI) Deputy Governor M Rajeshwar Rao has warned. Speaking at an event in Mumbai on 5 June, Rao underscored the urgent need for structural reforms in lending practices to ensure responsible and sustainable credit models. 'The [microfinance] sector continues to suffer from a vicious cycle of over-indebtedness, high interest rates and harsh recovery practices,' said Rao, according to the full speech published on the RBI's website on Monday. He noted that even lenders with access to low-cost funds are charging 'significantly higher margins than the industry norm,' which in many cases 'appear excessive.' Although interest rates on microfinance loans have moderated slightly in recent quarters, 'pockets of high interest rates and elevated margins continue to persist,' Rao said, adding that these practices have intensified stress in the sector, particularly in the current financial year. Concerns over mounting stress Commercial banks have already flagged concerns about growing distress in the microfinance ecosystem, driven by borrower indebtedness, falling rural incomes, and election-related disruptions. Rao called for a shift in mindset among lenders, urging them to stop treating microfinance as a 'high-yielding business' and instead prioritise credit discipline and borrower welfare. 'There is a critical need to curb over-leverage and strictly avoid coercive recovery practices,' he said. He added that while many institutions have sound business models, flaws in organisational structures and incentive mechanisms can lead to 'perverse outcomes' for borrowers. 'This calls for an introspection around the models,' he said. Financial inclusion and historical milestones Rao's remarks were part of a broader speech on financial inclusion, where he highlighted the vital role of access to financial services in reducing poverty, fostering social equity, and promoting economic development. Reflecting on India's progress in this area, he cited key milestones including bank nationalisation in 1969, the introduction of Priority Sector Lending, and the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY). As of 21 May 2025, over 550 million Jan Dhan accounts have been opened, with 56 per cent belonging to women, and cumulative deposits crossing ₹2.5 trillion. Responsible lending and borrower awareness Rao emphasised that increasing access to credit must go hand in hand with responsible lending and financial education. Without adequate awareness, financial inclusion could instead result in poor decision-making, mis-selling, and further debt accumulation. 'To facilitate informed decision-making by the customers and enhance transparency by the lenders, the RBI has mandated that all REs provide a standardised disclosure of key terms and conditions in the form of Key Fact Statement (KFS) to all retail and MSME borrowers,' he noted. Rao's candid comments reflect the central bank's deepening concern over unhealthy practices in India's microfinance space. As the country advances its financial inclusion agenda, the RBI is pushing for a parallel focus on ethical, transparent, and sustainable lending — especially for economically vulnerable populations.
United News of India
8 hours ago
- Politics
- United News of India
Past 11 years India witnessed rapid change leading to progress, ease of living: PM
New Delhi, June 9 (UNI) Prime Minister Narendra Modi said on Monday that with 'collective participation' of 140 crore people and backed by good governance during his tenure, India witnessed rapid transformation across diverse sectors leading to progress and 'Ease of Living'. As he completes eleven years in office on Monday, the Prime Minister said India has not only become the fastest-growing major economy but also a key global voice on pressing issues like climate action and digital innovation. It was on this day in 2014, Modi took oath as the Prime Minister for the first time. 'Powered by the blessings and collective participation of 140 crore Indians, India has witnessed rapid transformation across diverse sectors with clear focus on good governance and transformation. Guided by the principle of 'Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas', the NDA Government has delivered pathbreaking changes with speed, scale and sensitivity,' he posted on social media platform X. From economic growth to social upliftment, the focus has been people-centric, inclusive and allround progress, Modi added. He said his government prioritized people-centric, inclusive and all-round progress. The last eleven years have brought many positive changes and boosted ease of living, he said, adding that India today is not just the fastest-growing major economy, but also a key global voice on pressing issues like climate action and digital innovation. 'We are proud of our collective success but at the same time, we look ahead with hope, confidence and a renewed resolve to build a Viksit Bharat,' the Prime Minister said. He urged people to take part in a survey on the NaMo App on India's growth journey over the last 11 years and shared a link of a portal where anyone can take part in Jan Man Survey about India's growth journey over the last 11 years. "Your views matter the most ! Take part in this survey on the NaMo App and let us know how you view India's growth journey over the last 11 years #11YearsOfSeva", the Prime Minister posted on X. 'Over the last 11 years the NDA Government has redefined women-led development. Various initiatives, from ensuring dignity through Swachh Bharat to financial inclusion via Jan Dhan accounts, the focus has been on empowering our Nari Shakti. Ujjwala Yojana brought smoke-free kitchens to several homes. MUDRA loans enabled lakhs of women entrepreneurs to pursue dreams on their own terms. Houses under the women's name in PM Awas Yojana too have made a remarkable impact. Beti Bachao Beti Padhao ignited a national movement to protect the girl child. In all sectors, including science, education, sports, StartUps and the armed forces, women are excelling and inspiring several people,' the Prime Minister said. Defence Minister Rajnath Singh described the 11-year tenure of Prime Minister Modi as a period of "unprecedented development" and "epoch-making political, social, and economic transformations." Highlighting India's growing self-reliance in the Defence sector, Singh credited PM Modi's vision of Atmanirbhar Bharat for empowering the country to stand confidently among the world's top five economies. 'India today stands well-equipped, confident, and unwavering in its resolve to safeguard its sovereignty and territorial integrity at all costs,' he said in a series of tweets on social media platform X. 'These 11 Years of Seva have been a story of the realization of the dreams of our freedom fighters and Constitution makers—who envisioned a democracy that is not just political, but also social and economic in nature.' He emphasized that under PM Modi's dynamic leadership, India is not merely progressing, but rising to claim its 'rightful place in the comity of nations.' BJP President J P Nadda, in a press conference on the occasion said that over the past 11 years, a remarkable transformation has taken place. 'PM Modi has reshaped the Indian political culture. In the past, politics was often driven by appeasement, aimed at preserving power.' 'Over the past years, we have brought transparency and built a forward-looking, futuristic administration. Past 11 years the Modi government had taken several bold decisions including removing Article 370 etc. Also, decisions were taken to strengthen India's economy. However, Congress president Mallikarjun Kharge alleged that past 11 years had harmed 'Indian democracy, economy and the country's social fabric'. In a statement on social media platform X, Kharge accused the BJP-RSS alliance of systematically weakening constitutional institutions and undermining their autonomy. Editors pick up from related series. UNI Team RB PRS
India Gazette
10 hours ago
- Business
- India Gazette
Union Home Minister Amit Shah calls 11 years of Modi government a 'golden era' of public service
New Delhi [India], June 9 (ANI): Union Home Minister Amit Shah on Monday described the last 11 years under Prime Minister Narendra Modi's leadership as a 'golden period' of dedicated public service, marked by significant strides in economic revival, social justice, cultural resurgence, and national security. In a post on X, Amit Shah wrote, 'The historic 11 years of the Modi Government have been a golden period of resolve, endeavour and dedication towards public service.' '#11YearsOfSeva The country has seen a new era of economic revival, social justice, cultural pride and national security. The Modi government has proved that when the leadership is clear, the resolve is firm and the intention is of public service, then new records of service, security and good governance are created,' the post reads. Narendra Modi first took oath as the Prime Minister of India on May 26, 2014, and is currently serving his third consecutive term. Marking the occasion, the Union government also released a comprehensive e-book detailing achievements across various sectors over the past 11 years. The year 2025 marks 11 years of Prime Minister Narendra Modi's government. The book said that these 11 years have been dedicated to bringing about development that is inclusive, progressive, and sustainable. 'The government under Prime Minister Modi has been steadfast in its commitment to creating equity and opportunity for all citizens,' it added.'PM Modi has brought the politics of development - Vikasvaad - into the mainstream, making it the focal point around which political discourse and policy action now revolve,' it reads. The book said that since assuming office in 2014, PM Modi has remained firm in his resolve to keep 'India First' in every policy formulation and action. It added that the resolve is evident in the government's handling of both external and internal security, economic management, empowerment schemes for marginalised groups, efforts at cultural conservation and so on. Highlighting the government's steps in handling COVID-19, the book said, 'Prime Minister Modi's government has always believed in setting challenging targets and achieving them before the set deadline. This can be seen across sectors, whether it is in vaccinating the entire eligible population in record time against Covid-19, recording the nation's highest ever exports in history, in the digital revolution which is taking place across India, in achieving monumental targets for rural electrification, in building world-class infrastructure or in providing drinking water facilities across households.' It emphasised that there has been a paradigm shift in public service delivery and the implementation of government schemes using the JAM Trinity - Jan Dhan, Aadhaar, and Mobile - in the last 11 years. 'In the last 11 years, there has been a paradigm shift in public service delivery and the implementation of government schemes using the JAM Trinity - Jan Dhan, Aadhaar, and Mobile. JAM Trinity is the key enabler of India's transformed and well-developed digital landscape. It has removed intermediaries and permits direct transfer of benefits into an intended beneficiary's bank account.' Emphasising the government's action for conservation of the environment, it said, 'Under Prime Minister Modi, India has championed environmental protection globally, emerging as a leader of the movement. The United Nations declared June 21st as International Yoga Day, an acknowledgement of the global recognition of the heritage. It also mentioned Operation Sindoor, describing it as a demonstration of a new India--resolute, swift, and sovereign in action. 'India's assertion on the global stage has also undergone a remarkable evolution. The success of Operation SINDOOR demonstrated a new India--resolute, swift, and sovereign in action.' The book is a comprehensive compendium about India's transformation under PM Modi's 'visionary leadership across fourteen facets of policymaking, ranging from infrastructure to foreign policy to social justice'. The book has 14 chapters, highlighting developmental aspects in different social, technological and educational sectors. It also noted the government's efforts to lift the marginalised class and different sections of society. (ANI)
Hans India
17 hours ago
- Politics
- Hans India
NDA govt redefined women-led development in 11 yrs: PM
New Delhi: Narendra Modi, Women-Led Development, NDA Government, Ujjwala Yojana, Beti Bachao Beti Padhao, Welfare SchemesA day before his government marks its first anniversary in third term, Prime Minister Narendra Modi said on Sunday that the ruling BJP-led National Democratic Alliance has redefined women-led development in its 11 years in power. In all sectors, including science, education, sports, startups and the armed forces, women are excelling and inspiring several people, Modi said on X. He cited a number of welfare programmes which, he noted, have benefitted women immensely. Various initiatives, from ensuring dignity through Swachh Bharat to financial inclusion via Jan Dhan accounts, the focus has been on empowering the women, he said. If 'Ujjwala Yojana' brought smoke-free kitchens running on gas cylinders to the poor households, 'MUDRA' loans enabled lakhs of women entrepreneurs to pursue dreams on their own terms. Houses under the women's name in PM Awas Yojana too have made a remarkable impact, Modi added. 'Beti Bachao Beti Padhao' (save daughter, educate daughter) programme ignited a national movement to protect the girl child, he said. The Prime Minister shared a thread of a government-run citizenship engagement platform, which listed benefits brought to women by several government schemes. It said the maternal mortality ratio declined to 93 per lakh live births in 2019-21 from 167 in 2011-13, and the households with tap water connections zoomed to 15.64 crore in May 2025 from 3.23 crore in August 2019. Over 10 crore cooking gas connections were given under the Ujjwala scheme, it said, while highlighting several other welfare measures targeting women. In the run up to the anniversary, Modi has been highlighting his government's work for different sections of society, including the poor, farmers and youths.
India Gazette
a day ago
- Politics
- India Gazette
Nari Shakti is actively participating in resolution of Viksit Bharat: PM Modi
New Delhi [India], June 8 (ANI): Prime Minister Narendra Modi has highlighted the transformative role played by women in the journey towards a developed India, underlining the government's focus on women-led development over the past 11 years. The Prime Minister said that our mothers, sisters, and daughters have seen times when they had to face difficulties at every step. But today, they are not only participating actively in the resolution of a developed India but are also setting examples in every field, from education to business. Modi further added that Nari Shakti's successes in the last 11 years are a matter of pride for all citizens. The Prime Minister noted that the NDA Government has redefined women-led development through a series of impactful initiatives. These include ensuring dignity through the Swachh Bharat Abhiyan, financial inclusion via Jan Dhan accounts, and empowerment at the grassroots level, as per the release. He cited Ujjwala Yojana as a milestone that brought smoke-free kitchens to several homes. He also highlighted how MUDRA loans have enabled lakhs of women to become entrepreneurs and pursue their dreams independently. The provision of houses in women's names under the PM Awas Yojana has also made a remarkable impact on their sense of security and empowerment. The BJP-led NDA government at the centre released a book highlighting its achievements in empowering women over the last 11 years. As the NDA completes its 11 years in government, the book highlights various key schemes, such as Beti Bachao Beti Padhao and Sukanya Samriddhi Yojana. 'Driven by a bold, inclusive, and lifecycle-based approach, the government has launched targeted interventions in health, education, housing, digital access, sanitation, and financial inclusion. 'Nari Shakti' is now a national mission, empowering every woman--urban or rural, young or elderly--to live with dignity, safety, and self-reliance,' the book reads. It said that for generations, Indian women faced systemic barriers--limited access to education, healthcare, employment, and decision-making, especially in rural and marginalised communities. Still, under Prime Minister Narendra Modi's leadership, a historic shift has taken place since 2014. Women are no longer seen as passive beneficiaries but as empowered agents of change, central to India's growth story. Women are leading self-help groups, launching businesses, breaking barriers in science, defence, and sports, and shaping the nation's future. Women and children comprise nearly 67.7 per cent of India's population, the report said, adding that their empowerment is not just social reform--it's a strategic imperative. As India enters Amrit Kaal, Nari Shakti stands as the unstoppable force driving a stronger, more inclusive nation forward. 'Empowerment isn't a singular event -- it is a journey. The Modi government's policies reflect this reality through programmes designed to support women through every phase of life. Prime Minister Narendra Modi has time and again reiterated that a nation can progress only when its women are equally empowered. Over the last 11 years, the Government of India has adopted a comprehensive, lifecycle-based policy framework to empower women across social, economic, political, and legal domains,' the book note. The book further underlined the government's efforts to reduce violence and discrimination against women, providing a constitutional safeguard. 'From constitutional safeguards and landmark laws against violence and discrimination, to transformative schemes like Beti Bachao Beti Padhao, Mission Shakti, and movements like the historic Nari Shakti Vandan Adhiniyam, the focus has shifted from women's development to women-led development,' the book said. The Prime Minister also recalled the Beti Bachao Beti Padhao campaign, which he described as a national movement to protect the girl child. Modi affirmed that in all sectors- including science, education, sports, start-ups, and the armed forces- women excel and inspire several people. The Prime Minister shared these remarks through a series of posts on X. In one of the post, Prime Minister Modi stated that women, previously faced with numerous challenges, are now actively contributing to India's development. 'Our mothers, sisters, and daughters have seen the times when they had to face difficulties at every step. But today, they are participating actively in the resolution of a developed India and setting examples in every field, from education to business. The successes of our Nari Shakti in the last 11 years are going to make the countrymen proud. #11YearsOfSashaktNari,' he posted on X In another post, PM Modi highlighted the NDA Government's efforts over the past 11 years to empower women through various initiatives: Swachh Bharat for dignity, Jan Dhan for financial inclusion, Ujjwala Yojana for smoke-free kitchens, MUDRA loans for women entrepreneurs, PM Awas Yojana for housing in women's names, and Beti Bachao Beti Padhao for girl child protection. He also praised women's achievements in sectors like science, education, sports, start-ups, and the armed forces. 'Over the last 11 years, the NDA Government has redefined women-led development. Various initiatives, from ensuring dignity through Swachh Bharat to financial inclusion via Jan Dhan accounts, have focused on empowering our Nari Shakti. Ujjwala Yojana brought smoke-free kitchens to several homes. MUDRA loans enabled lakhs of women entrepreneurs to pursue their dreams on their own terms. Houses under the women's name in PM Awas Yojana, too, have made a remarkable impact. Beti Bachao Beti Padhao ignited a national movement to protect the girl child. Women excel and inspire several people in all sectors, including science, education, sports, start-ups, and the armed forces,' he posted on X (ANI)
