Improving Access to Finance Sector Development Program

The expected impact of the Program is improved access to finance to the poor and low income population. A key outcome of the Program is the development of sound and market oriented microfinance sector. They key outputs include sound and conducive microfinance policy environment, (ii) microfinance supervision and regulation enhanced operation of the microfinance wholesale organizations improved skills and efficiency of microfinance institutions (MFIs) enhanced management information system technology at MFIs increased self resource mobilization through savings by MFIs improved microfinance outreach in hills and mountains, and improved access to finance with technology based branchless banking solutions. In view of establishing an independent supervisory authority for MFIs, review the existing legal and regulatory framework for microfinance including a Draft Micro Finance Act and provide recommendations on regulations for supervision of MFIs to ensure sound microfinance sector governance. In view of establishing an independent supervisory authority for MFIs, review the existing legal and regulatory framework for microfinance including a Draft Micro Finance Act and provide recommendations on regulations for supervision of MFIs to ensure sound microfinance sector governance. Develop a business and operation plan for the second tier institution (STI) for regulation and supervision of MFIs. Such plan shall be detailed in governance, management, staffing, operations, funding, and business process. Based on the proposed licensing and regulatory functions of STI, develop an information technology infrastructure plan for the STI and draft a necessary procurement plan. In addition to the regulatory requirements of STI, develop prudential norms, information and disclosure system, accounting, auditing, and licensing procedures for MFIs for self-regulation. Develop an appropriate training plan for dissemination of self-regulation to MFIs.