MFIs commit to enhance people's acces to finance

Dhulikhel, Aug 11: The Micro-Finance Institutions (MFIs) Friday expressed their commitment to enhance deprived people's access to finance, develop entrepreneurship, work for institutional development of the MFIs and enhance capacity of human resources.

The commitment was expressed at the 2-day symposium of Chief Executive Officers (CEOs), organised by the Centre for Self-Help Development (CSD) in Dhulikhel.

In the declaration they issued at the end of the conference, they showed thier readiness to send the details of their clients to the Credit Information Bureau (CIB) regularly and apply the latest technology to extend reliable, easy, transparent and accountable service to the people.

"In the changing political scenario, orientation programmes will be conducted to inform the newly-elected representatives about the objectives, methods and work styles," reads the declaration.

It said that the MFIs would be committed to women empowerment, poverty reduction, financial inclusion, entrepreneurship development, and sustained, accountable and transparent business practices.

Speaking at the conference chief of Micro-Finance Promotion and Supervision Department at the Nepal Rastra Bank (NRB) Upendra Kumar Paudel said that the e-mapping of the MFIs was almost completed.

Prepared by the NRB and the United Nations Capital Development Fund (UNCDF), the e-mapping will help in the scenario of the MFIs in Nepal, including the unbanked areas. Paudel said that the central bank will not allow MFIs to open relations office in Kathmandu.

"Only the MFIs in the quake-hit districts were allowed to have such office in the capital just for the communication purpose," he said.

CSD chairman Shankar Man Shrestha urged the MFIs to create employment for the youth so as to stop them from leaving country in search of jobs. "Raising income of the have-nots should be the main objective of the microfinance banks," he said.

Titled as 'Appraising current challenges and issues in microfinance', the conference was attended by the chiefs of about 50 MFIs, Financial Intermediaries Non-Government Organizations (FINGOs) and microfinance cooperatives.

There are 53 microfinance institutions, 25 FINGOs and over 150 cooperatives providing microfinance services in Nepal.