A hundred small, considered steps

Abstract

Raghuram Rajan's path is not easy, only because his prior positions are too well known. On 26 November 2010 there was a signed piece in The Indian Express titled Help microfinance, don’t kill it. Among the high profile signatories to the piece—all affiliated to American universities—was Raghuram Rajan, then at the University of Chicago, now governor of the Reserve Bank of India (RBI). This letter, among other things, had urged intervention by RBI, argued that the break-even interest rates of microfinance institutions (MFIs) are anywhere between 20% and 38% and made the case that Indian MFI interest rates are among the world’s lowest. It said regulations that set strict interest rate ceilings should be avoided and that a well-functioning credit bureau and Microfinance Institutions Network (MFIN) code of conduct were a good basis for regulation and should be strengthened. Read more at: https://www.livemint.com/Opinion/rcKHbO1SOTqOp268JIaxQN/A-hundred-small-considered-steps.html