1. Responsible Finance India Report
Dr. Alok Misra,
Professor, Public Policy & Governance, Management Development Institute (MDI)

2. What is Responsible Finance & Why?
Global discourse has shifted from Rural Finance to Inclusive Finance to Responsible Finance
2008 Global Crisis & Mf crisis in India, Bosnia, Nicaragua….
“How” equally (if not more) important than outreach
Responsibility to Clients and Staff
Client protection: Appropriate products, Pricing, Avoiding Over Indebtedness, Transparency, Grievance redressal
Another dimension - Usage and Outcomes over Access
CGAP, IFC, World Bank, Responsible Finance Forum, AFI
Issue of Data/Reports measuring RF – RBI/CoC/USSPM/Smart in Microfinance
Critical now to embed RF across channels

3. What’s in the RF Report?
Progress of MFIs on RF across USSPM dimensions (35 million)
Governance, Poverty Outreach, Pricing, Transparency, Grievance Redressal, Avoiding Over-indebtedness, Appropriate Products
Role of MFIN as SRO in promoting RF
ICoC compliance through TPE, GRM framework (7181/7085), Dispute resolution, CB ecosystem, Data dissemination and analysis, Client education
Evidence from the field (2 Studies)
80% would prefer MFIs for Savings, 45% stress in repayments
Risks in Mf- Meta data
5 States-55%, Top 50-45% (55% in 520)
High growth across institutions backed by repayment frequency shift & higher loan size, Problem spots frequency increased

4. What’s in the RF report?
SHG-Bank Linkage (~100 million, 7.9 million SHGs)
Growth after dip, Digitisation, Women empowerment
Skew, Under financing, Grievance redressal, NPAs – role of SHPAs
MUDRA/PMJDY/P2P & Suggestions to strengthen RF
MUDRA – move towards building ecosystem (CG, Literacy, Products)
PMJDY – BC viability needs relook, Client literacy, Grievance redressal
Reducing regional skew, E-KYC, Patient capital, Harmonisation of assessments, SRO funding, Regulatory arbitrage