State Initiatives

Team

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State Initiatives

MFIN has been working for the development of socially responsible and financially accountable microfinance services and promoting the national agenda of financial inclusion to serve the low-income households, particularly women in both rural and urban India.

MFIN’s current membership consists of 50 leading NBFC– MFIs in the country which on an aggregate basis constitutes over 90% of the microfinance industry (excluding SHGs).

To strengthen the field level engagement and its information flow, MFIN has formed state chapter and district forum across the country considering the member organizations operation within the states and districts. The states & districts chapters are working as a representative body of the MFIN. All the states where member MFIs are operating are covered either through MFIN Chapters or through Composite chapters clubbing 2 or more states. Similarly, district forums and composite district forums have been set up based on the presence of NBFC-MFIs.

Each State chapter has identified its coordination committee members. The coordination committee facilitates coordination and smooth functioning of the state chapter. The committee members are identified by all the members and it functions for three years. The members are identified on the basis of their state presence and their outreach within the state. The committee guides, monitors the state & district chapters’ agenda in consultation with other operative members.

Each district forum is having a lead MFI, responsible for the district level coordination among the member MFIs. The lead coordinator designated by the lead MFI is responsible to coordinate and facilitate the district forum meetings at his office as per the frequency decided by the state chapter. Mostly it is quarterly in every chapter. The meeting minutes of the same are prepared in the approved format of MFIN and are shared with MFIN regional representative. District meetings have a standard agenda to follow in addition to any other agenda as per the contextual requirement.

The MFIN regional representative closely works with State Coordination Committee and District Lead Coordinators. All the minutes of the district forums are consolidated and shared by the MFIN regional representative in every quarter at the State Chapter Meeting.

Objectives of the MFIN’s State Chapters:

  • Coordination with all member MFIs and formulate the state chapter. That state chapter will carry its works under the guidance of the national office of MFIN.
  • It addresses the state specific issues and challenges of the sector.
  • State steering committee will be formed by the State Chapter.
  • It will carry out the surveillance at the state on regulatory and code of conduct compliance.
  • It will take responsibility to protect clients and focus on client’s financial literacy through field visit.
  • It will monitor compliance by NBFC-MFIs with the regulatory framework put in place by the RBI.
  • It will hold the monthly/quarterly meetings with the members and identify to implement the district forum at the state with the presence of at least 1/3rd steer committee members.
  • State Steering committee maintains close relationship with the state level stakeholders (Bankers, State MoF, Apex Banks and Practitioners etc.) to make them aware about the sector happening and its issues & challenges along with MFIN-Regional manager.
  • State chapter invites important stakeholders (State MoF, Bankers, Apex banks, practitioners etc.) of the state in its meeting to update them about the sector and its issues & challenges.
  • In State chapter meeting the discussion on advisory note/circular issued by the MFIN also takes place to ensure its understanding and implementation. If require the state chapter may share its feedback or sought for further clarification for better understanding on the said advisory note/circular from the national office.

Objectives of the MFIN’s District Forums:

  • The district forum will address the district related issues and concerns.
  • The district forum maintains a close relationship with the district level stakeholders (Lead Bank, District Magistrates, District Collectors and SP etc.) to make them aware about the sector happening and its functions along with MFIN-regional manager.
  • It can also invite in its meeting the important stakeholders of the district (Lead Bank, District Magistrate, District Collector, Superintendent of Police & other important stakeholders etc.) to update them about the district level happening, sector and functions.
  • District chapter identifies the disturbed areas, negative areas, risky areas, ring leader, fraudulent staffs, fraudulent groups of client/individual etc. and share within the operative MFIs.
  • Whenever some external agencies or stakeholders seek MFIN’s help to get the field level information. The national office of MFIN guide the State & District level chapter as per the requirement of the same. It could be data requirement; it could be field visit or any other specific requirement.
  • In case of any urgent issues take place; the district forums act first and also share a report on the same with the national office, as per the degree of the problem. Necessary actions being taken to resolve the issues.
  • State & District chapter also identifies chit fund / deposit taking organization and share with the members with an instruction to make clients beware of those organizations. Such information also being shared with RBI regional office for their necessary action.
  • State & District steering committee/chapter will ensure the members participation in its all meetings.
  • Lastly, state & district chapter will create a favourable atmosphere within the state and district for the microfinance operation.

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District Forum and its Scope of Works:

  • Interaction, engagement and providing support to members operating in the district.
  • Coordination Platform at the district level for members and in some cases, other related stakeholders.
  • Hub for information dissemination, mutual learning, development and support for members and stakeholders.
  • Interact & coordinate with Government and other important Stakeholders in the district.
  • To act as surveillance radar for the MFIN SRO team to pick risk signals in the district.
  • Facilitating members compliance to the MFIN SRO guidelines.
  • Promoting client level awareness, education and engagement.
  • Media handling and engagement as necessary.
  • Handling field level crisis if any.
  • Advocacy at district level government agencies.
  • To create a conducive environment for the microfinance operation at district level.

District Forum – as Surveillance Radar:

Keeps monitoring on:

  • Geographical concentration and penetration levels.
  • High ticket size loans and multiple loans.
  • Process violation or dilution in the field.
  • External risks such as operations of bogus entities.
  • Ring leader issues.
  • Staff frauds issues.
  • CIB usage and data quality issues.
  • Client level grievances.

 

Individual State Chapters/Composite Chapters

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 ** MFIN Closely work with State Level Local Associations

Number of District Forum

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