#microfinance company licence

[kennysho]

Why CBN Revokes licenses of 132 microfinance banks

Why CBN Revokes licenses of 132 microfinance banks CBN GOV. The operating licenses of 132 Microfinance Banks, three finance companies and four primary mortgage banks have been revoked by the Central Bank of Nigeria. The CBN said the Microfinance Banks, Finance Companies and Primary Mortgage Banks ceased to carry on, in Nigeria, the type of business for which their licences were issued for a…

[joecrackconcept]

Consistent Trust Microfinance Bank Job Recruitment for Credit Officer 2022/2023

Consistent Trust Microfinance Bank Job Recruitment for Credit Officer 2022/2023

Consistent Trust Microfinance Bank is currently recruiting suitably qualified candidates to fill the vacant job positions in their company. Interested candidates should kindly follow the job application guidelines below to apply successfully. Consistent Trust Microfinance Bank is a registered financial institution with the CAC and licenced by CBN. The company was established in 1992 as one of the…

[pressgisttv]

Consistent Trust Microfinance Bank Job Recruitment for Credit Officer 2022/2023

Consistent Trust Microfinance Bank Job Recruitment for Credit Officer 2022/2023

Consistent Trust Microfinance Bank is currently recruiting suitably qualified candidates to fill the vacant job positions in their company. Interested candidates should kindly follow the job application guidelines below to apply successfully. Consistent Trust Microfinance Bank is a registered financial institution with the CAC and licenced by CBN. The company was established in 1992 as one of the…

[biatconsultant]

Establishment of a Microfinance Company

Microfinance companies, as the name implies, are commercial entities that give loans to low-income people who have fewer financial needs than other members of society. Traditional financial institutions, including banks and other financial institutions, are often unavailable to these areas.

Microfinance Companies are Required

Several organizations in India, such as banks, provide loans to finance enterprises. Therefore, why would we require microfinance firms? The requirement exists because it fulfils the following objectives:

It offers financial support to businesses that are unable to put up security.

It promotes female entrepreneurship.

It gives much-needed assistance to startups.

It provides aid even for little amounts, which are usually funded by personal loans.

It formalizes the loan and borrowing procedure. As a result, low-income populations are more disciplined when it comes to spending. This avoids over-borrowing and the hassles that come with large future debts. This avoids over-borrowing and the hassles that come with large future debts.

Microfinance Corporations are formed

Just a Non-Banking Finance Company (NBFC) should be permitted to undertake financial transactions, according to the Reserve Bank of India. The RBI, on the other hand, grants specific organizations exemptions to conduct accounting operations up to a set limit.

As a result, a microfinance corporation can be registered in one of two ways:

Non-banking finance companies (NBFCs) have been formally accepted by the Reserve Bank of India (RBI)

Organizations that fall under Section 8 (companies formed under Section 8 of the Companies Act 2013)

Registration as an NBFC for a Microfinance Company

The registration procedure differs greatly because of the distinction between the two methods for founding a microfinance organization. The stages involved in registering a microfinance firm through an NBFC are as follows:

Establish a private or public organization: The first stage in becoming an NBFC microfinance company is to establish a private or public organization. A private business must have at minimum two members and a capital of Rs 1 lakh to be formed. A minimum of 7 members are necessary to start a public business.

Raise capital: The next stage is to generate the needed Rs 5 crore in net owned cash. A total of Rs 2 crore is required for the northeastern region.

Deposit the capital: Once the capital has been collected, it must be deposited in a bank as a fixed deposit and a 'No lien' declaration is obtained.

To register for a licence, follow these steps: Lastly, the NBFC should complete an online licence application and upload it with all approved documentation. A photocopy of the application and licence should be presented to the Reserve Bank of India's regional office. The following documents should be presented to the NBFC at the time of filing:

Articles of Association and Memorandum of Association

The company's certificate of incorporation

a copy of the board resolution

a copy of the auditor's report on the receipt of a fixed deposit

A Banker's Certificate of No Lien certifying that the net held fund is not encumbered.

The company's banker's report

The directors' most recent credit report

Certificate of the directors' net wealth

Professional qualification/education the director's proof

The director's know-your-customer (KYC) and proof of income

Job experience in the financial sector must be demonstrated.

The firm's structure plan

Registration of a Microfinance Company as a Section 8 Corporation

The alternative option is to incorporate as a Section 8 corporation. The following is the process to be taken in this case:

To obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN): follow the steps below. The first step in forming an organization is to register for a DSC and DIN. The DSC is required for the e-forms to be authorised.

Apply for name approval: The next step is to fill out Form INC-1, which is an application for name approval. Its name should imply that it is a Section 8 corporation. As a result, the phrases Sanstha, foundation, or micro-credit must appear.

Articles of Association (AOA) and Memorandum of Association (MOA): Requires the acceptance of the name, the corporation must create the MOA and AOA and file them along with other required paperwork.

Organize all pertinent documents: To receive a licence, the final step is to file all essential documents, including the incorporation certificate and Form INC -12. The following are the essential fundamental paperwork needed to register a business under both models:

All directors/promoters have a copy of their PAN cards.

Identity-verification documents

Proof of address documents

All directors/promoters are photographed.

Evidence of registered office ownership or a rental agreement with the owner for the same NOC

The state-mandated stamp duty is applicable.

Any other documentation that may be requested

As can be seen, forming a microfinance organisation as a Section 8 corporation is extremely simple; nevertheless, lending capacity is restricted. As a result, an institution must analyze all of the information before making a judgment.

Disclosure: The information contained below is offered exclusively for educational reasons. When you access or utilize the site or the materials, no attorney-client relationship is formed. This website's content does not represent legal or professional advice, and it should not be used for such reasons or as a substitute for legal counsel.

Read More :  IAS standards

[theyourclasses]

19 April Current Affairs 2020 in English

New Post has been published on https://yourclasses.in/19-april-current-affairs-2020-english

19 April Current Affairs 2020 in English

19 April Current Affairs 2020 in English

        1. What is the name of the Navi’s microfinance arm who had formally approached the Reserve Bank of India (RBI) for a universal banking licence? Chaitanya India Fin Credit Pvt. Ltd.

India Biotech has tied up with which US Company to develop a vaccine named “Coro-Flu”? FluGen

Who is the founder of of UPSCGuide e-learning platform? Abhijeet Nikam

Recently how much loan under RFI has been requested by Pakistan from IMF? 1.4 billionDollar

5.The Union minister of Agriculture Narendra Singh Tomar has chaired the National conference 2020 on which crops (in April 2020)?Kharif

The Corporation Bank & Andhra Bank has now been amalgamated into which entity? Union Bank of India

Which subjects have been included in the electronic format of comic textbooks, launched by Manipur Government in a single electronic format? Mathematics, Environmental Studies and English Language

The first series of “DekhoApnaDesh” webinar launched by the Ministry of Tourism is based on which city? Delhi

Algerian writer Abdelouhab Aisoui has received the 13th International Arab Fiction Award 2020 for his novel __. ‘The Spartan Court’

From which year onwards the Asian Boxing Championship became a combined event for men and women? 2019

[vsplusonline]

Sachin Bansal bets Flipkart fortune on banking services

New Post has been published on https://apzweb.com/sachin-bansal-bets-flipkart-fortune-on-banking-services/

Sachin Bansal bets Flipkart fortune on banking services

Sachin Bansal, who acquired microfinance firm Chaitanya India last September after his momentous Flipkart exit, travelled to Jagalur, a small town in Karnataka, recently for a branch visit and decided to check out the competition, a government-owned regional bank.

Jagalur, about 250km from Bengaluru, has a population of 25,000. The regional bank’s offices here were packed that day; Kannada-speaking customers, upset about a problem, were shouting at the 25-year-old branch manager, a Maharashtra native who didn’t understand the local language.

“There were about 100 depositors in that branch, and the manager did not speak Kannada,” said Bansal, using the episode to illustrate the state of banking in rural India.

The central government’s mandate is that 33% of branches of public sector banks should be in rural pockets. But Bansal believes the sector needs fresh ideas to serve these regions more efficiently and at lower costs.

“Regulators understand that existing players may not be able to solve problems and they need new players coming in,” Bansal said.

This is not just a broad, detached observation. Bansal, through Chaitanya India, has applied for a banking licence. And this is just the start. The 38-year-old entrepreneur, who built India’s largest online retailer Flipkart and sold his stake to US retail giant Walmart for $1 billion in 2018, is putting nearly all his money into building a digital financial services empire. Can he repeat the success of Flipkart, which had a valuation of $22 billion when sold and is among the top 20 most-valued private companies in India, in a highly regulated sector? Unfinished business While the Flipkart exit made Bansal the first billionaire (in terms of cash in hand) in India’s digital economy, it came on a bitter note. He wanted to continue running the company and make it the first $100-billion valuation digital company; he was also looking to increase his stake, according to reports from 2018. But most investors at Flipkart preferred an exit. Incoming promoter Walmart also wanted to work with Flipkart co-founder Binny Bansal and CEO Kalyan Krishnamurthy, who were running day-to-day operations after Sachin Bansal became the executive chairman in 2016. This had left him “very disappointed” and he felt there was “unfinished business” of creating a mega-billion-dollar, truly Indian company, the Economic Times reported in May 2018, citing sources.

The ambition is clear: to build a modern-day HDFC Bank, India’s largest private sector lender whose market capitalisation hovers close to $100 billion. The approach, however, will be different. Bansal wants smartphones, not branches, to be at the front and centre.

“If you look at building HDFC Bank from scratch with today’s technology and capabilities, it will look very different,” Bansal told STOI at the head office of Navi Technologies, an entity he owns (see graphic), in Koramangala, Bengaluru. Navi is short for navigator through financial services and also means “new” in Hindi.

“Ultimately we want to become a financial services ecosystem providing all kinds of services,” he said.

Navi is buying Essel Mutual Fund for a foray into asset management and DHFL General Insurance for insurance. Both firms were sold off by Mumbai-based business groups in distress sales as liquidity crunch hits the financial services space. The two deals are awaiting regulatory approval. Bankers tracking the space say neither DHFL nor Essel have significant operations and should be seen as “speedy” licence acquisitions.

Given the trouble in the banking sector, Bansal could have also opted for an acquisition, which may have accelerated the foray. “I think there are corporate governance issues in banks that are available. What you pay for the bank may not be the end of it,” he said, when asked if the merger & acquisition option was considered. “The culture of any organisation takes years to develop and it is hard to change. We would prefer the greenfield route if the RBI allows it.”

First on the agenda is to speed up the lending business. Chaitanya India is working on plans to bring down cash payments in favour of digital transactions and reduce paperwork and travel for both credit officers and customers through technology, which will make the business more efficient. Bansal’s cash infusion in the company has already made an impact. Earlier this month, rating agency ICRA revised Chaitanya India’s outlook to positive and lifted its rating from BBB- to BBB.

Bansal intends to devise a new product under the Navi brand that will focus on the middle class. Chaitanya India, on the other hand, will continue to offer microfinance options to the low-income segment. This way, different brands will serve different segments.

“We saw this in ecommerce: even if the exact same collection was available on Flipkart, people still preferred to shop on Myntra for fashion because the brand appealed to them,” Bansal said.

He didn’t disclose the focus area for Navi, but an ICRA filing reveals that he plans to expand loan portfolio to Rs 3,600 crore by March 2023 from Rs 738 crore as of September 2019. While microfinance portfolio is expected to reach Rs 2,600 crore in this four year period, he will, through Chaitanya Rural, lend another Rs 1,000 crore in consumer, personal, two-wheeler and business loan segments. These are expected to be among the fastest-growing segments in India’s retail loan market (see graphic).

The issue with traditional banks is that they have been built on old technology, as the outage of HDFC Bank’s net banking services for 2-3 days in December showed. “It is not a new app like a PhonePe or Paytm, which were created for the smartphone and which were much faster than bank applications. Banks don’t want to spend as they feel returns might not be that high,” said a banker tracking the space.

Tech entrepreneurs have already shown a lot of interest in the overall banking space. Over half a dozen startups, including Jupiter, Open and Niyo, have raised capital from top investors like China’s Tencent, New York-based Tiger Global and venture firms Sequoia Capital and Matrix Partners. They are, however, building neo-banks by partnering with existing lenders. Paytm Payments Bank, a part of the group which owns the most-valued internet company ($16 billion) in India, will be a major competitor, and it hopes to turn into a small finance bank, as STOI had reported in December.

“There is an opportunity to own new-generation customers, something that many neo-banks and fintech companies are trying to do by carving out a niche,” said TCM Sundaram, managing director at Chiratae Ventures. “Bansal, however, can’t grow this business like ecommerce, as one can end up with high non-performing assets. Since he has said he wants to invest all his capital, he seems to be here for the long haul.” Navigating regulators Bansal is aware of the market expectations and is building a business with a 20-year vision. He says that unlike in e-commerce or ride-hailing, bad service in finance can lead to unrepairable and collateral damage, as there is a multi-decade relationship and consumers are morerisk-averse . Regulations require banks to go for a public offering within six years of operation, and Indian public markets are not kind to loss-making companies.

“Financial services is not a winner-takes-all business, and regulators are very strong. We need to grow fast but start achieving balanced growth and profitability early, asthe confidence of regulators will not be high if you are not profitable,” Bansal said.

His chances of securing a licence are strong, according to about half a dozen fintech founders and executives with regulatory experience. But they said the process would take at least a year and he would have to go through grilling. RBI’s fit-and-proper criteria are quite demanding, and Bansal will have to present a clean record, which will be also scrutinised by the ministry of home affairs. Those aware of the central bank’s thinking said it was keenly watching how digital challenger banks in the UK, where over half a dozen players likeN26 and Monzo have been granted licence, are shaping up.

“RBI wants professionals coming forward who have a technological bent and it is not inclined to give licences to business houses,” said a fintech founder, who didn’t want to be named. In 2013, corporate houses like Anil Ambani’s Reliance Capital, L&T, Birlas and Bajaj Group were among the 27 players who applied for licences, which were given to microfinance company Bandhan and infrastructure financier IDFC.

“One of the entry barriers for professionals is coming up with starting capital of Rs 500 crore to Rs 1,000 crore,” said the founder. “But Bansal doesn’t face this issue.”

Bansal is also applying through Chaitanya India, which will give RBI comfort, considering that the last licence issued in personal capacity, to Yes Bank’s Rana Kapoor, has not panned out well. Kapoor’s term ended in early 2019 as RBI didn’t favour giving him a longer rope because of governance and compliance issues. He has sold all his shares in the bank.

“While Bansal has not built a financial services business, he was behind a large consumer business (Flipkart). The sanctity of capital is critical. He seems clean on that count and his investments in Ola and Ather are not classified as promoter bets,” a senior banker said, who has previously advised tech companies on banking licences.

Industry experts say Bansal’s decision to rope in former RBI director and ICICI Bank executive Nachiket Mor as an independent director will inspire confidence among regulators examining Bansal’s application. He has also brought on board Paresh Sukthankar, a former deputy to HDFC Bank CEO Aditya Puri.

Bansal’s bid to enter the banking space comes at a sensitive time: RBI’s plate is full as it deals with a slowing economy, management of high non-performing assets and consolidation of public sector banks. The factors may have an impact, according to the experts.

“Though Bansal’s application won’t be turned down because of these issues, they can increase the timeline,” said AP Hota, former RBI executive and managing director of National Payments Corporation of India. “Just because large players are there, it would be wrong to presume there is no space for new entrants. In a digital world, you never know who will come out with a brilliant product.”

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[abujaihs-blog]

Kudimoney Gets CBN’s MFB Licence, Rebrands

A local financial technology (fintech) company, Kudimoney, has obtained a microfinance digital banking licence from the Central Bank of Nigeria (CBN). In preparation to the launch of its full digital no-fee bank, the company has changed its name to Kuda Microfinance Bank. With this, the fintech firm can offer current accounts as well as debit cards – something it is already doing with a small group of alpha users. Founders of the company, Babs Ogundeyi and Musty Omotosho, explained that Kuda will offer frustrated consumers a more mobile, modern approach to traditional banking.

Unlike traditional banks, Kuda does not rely on banking fees, doesn’t profit from members’ misfortune or mistakes, and actually helps members get ahead financially. Kuda members receive a debit card, a Spending & Savings Account, and an app that keeps them in control of their finances at all times, no matter where they are located. “We’re excited to usher in a new era in consumer banking and serve the many Africans, who we believe are frustrated with traditional banks,” said Ogundeyi, co-founder & CEO of Kuda. “Starting with Nigeria, we’ll launch a new kind of bank with a continued focus on improving our members’ financial lives rather than trying to burden them with hidden fees and excessive charges.” he added. Source: Business Post Ng Read the full article

[cakandivali]

Sachin Bansal is ready to be a CEO again

Latest Updates - CA Mitesh Bengaluru: Flipkart cofounder Sachin Bansal has picked up a majority stake in Bengaluru-based microfinance company Chaitanya Rural Intermediation Development Services (CRIDS), in what is probably a stepping stone into the broader financial services space for the internet billionaire.Bansal has acquired 94% stake, allowing a majority of the existing investors in Chaitanya to exit through the deal. ET first reported the development on April 12.The nonbanking finance company (NBFC), eyeing fresh funding, was reportedly in talks with Bansal for a deal over the last few months. “This acquisition is our entry into financial services,” Bansal said in a note to the press.Bansal, who will invest Rs 739 crore in the NBFC, did not specify how much of that would be primary infusion of capital.The Flipkart cofounder will also take over as its chief executive officer. 71304339 Chaitanya confirmed that founders Samit Shetty and Anand Rao would continue to operate in their respective roles to manage existing business segments, thereby retaining their current roles and responsibilities.Bansal sold his entire 5.5% stake in homegrown ecommerce company Flipkart to US retail behemoth Walmart in 2018.After his exit, he cofounded BACQ along with Bank of America top executive Ankit Agarwal.Regarding the funding route for the acquisition, Bansal said he had invested his own money.ET had reported on February 21 that Bansal was keen to apply for a private banking licence and had met senior officials of the Reserve Bank of India.The acquisition of Chaitanya could be a step towards that, industry sources said.Chaitanya India Fin Credit, its lending arm, was founded in 2009 and operates as an NBFCMFI across five states through 195 branches, and a customer base of 350,000.It reported total revenue of Rs 110.5 crore, a jump of 45% from Rs 76.2 crore, according to its 2018-19 annual report.After reporting net loss of Rs 8 lakh in financial year 2018, it posted net profit of Rs 7.2 crore last year. Chartered Accountant For consultng. Contact Us: http://bit.ly/bombay-ca

[gobtv]

These 137 microfinance companies in Ghana are currently in good standing and are operating

These 137 microfinance companies in Ghana are currently in good standing and are operating

The central bank announced that it had revoked the licences of some 347 microfinance institutions in the country.

A statement from the central bank further noted that some of the institutions were insolvent while others had been out of operation for some time now.

BoG also said it has informed the Registrar of Companies at the Registrar General’s Department about the revocation and has requested…

[hypercitigh]

Microfinance shutdown: Over 2000 people to lose jobs

Microfinance shutdown: Over 2000 people to lose jobs

Over 2000 permanent staff of the collapsed Microfinance Companies will lose their jobs, Executive director of the Ghana Microfinance Institution Network, Yaw Gyamfi, has revealed.

Related: Check out the list of affected companies as Licences of 386 financial institutions revoked

This comes after the Bank of Ghana (BoG) revoked the licences of 347 insolvent microfinance companies due to liquidity…

[m-n-a-critique]

Satin Creditcare plans to demerge small and medium finance unit into NBFC

#SatinCreditcare plans to demerge small and medium finance unit into NBFC

Satin Creditcare, the third-largest microfinance company in India, plans to demerge its small and medium finance vertical into a separate non-banking finance company (NBFC). Recently, it had demerged its housing finance business into a separate NBFC.

The microfinance institution (MFI) has already applied for a licence for SME lending to the Reserve Bank of India. So far, the firm has raised debt…

[ghanafinancialmarket]

BoG Shuts Down 347 Insolvent Microfinance Cpys

BoG Shuts Down 347 Insolvent Microfinance Cpys

The Bank of Ghana (BoG) has revoked the licenses of 347 insolvent microfinance companies.

The shut down takes immediate effect from May 31, 2019. The licences of 192 of them were revoked in addition to that of another 155 that have ceased operations.

Actions

A statement issued by BoG said these actions were taken pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking…

[moneyhealthfinance-blog]

Finance: CBN's draft guidelines on Payment Service Banks has nothing to do with fintech startups, here's what it is really all about

Finance: CBN's draft guidelines on Payment Service Banks has nothing to do with fintech startups, here's what it is really all about

Over the weekend, there was a misleading report that financial technology companies (Fintechs) will have to pay N5 billion for licencing as a payment service provider in Nigeria.

This report is absolutely false as a Payment Service Bank (PSB) framework is totally different from a payment service provider as reported by a local newspaper report.

Just as the fintech companies acquire microfinance…

[hypercitigh]

License revocation: Gov't makes available over ¢900m to pay affected customers

License revocation: Gov’t makes available over ¢900m to pay affected customers

The Receiver of 386 collapsed microfinance companies has disclosed that government has made available over ¢900 million to pay off 1.2 million depositors and creditors.

Eric Nana Nipah of PricewaterhouseCoopers said, an assessment of the total debt shows there is about ¢1.1 billion to be paid.

Read Also: Check out the list of affected companies as Licences of 386 financial institutions revoked

T…