Ad Here  
When small is no larger beautiful.. For whom the MIDS bell tolls? Things happen by accident and not by design... Colour-Chem’s colourful KRVS Tihar, Puzhal not different from Parappana Agrahara TN – agglomerate land holdings without alienating ownership A professional at the helm of IRDA... Plummeting profits of PSBs Adharma of opposition politics Rs.1600 crore paper board plant of TNPL CRS, a jewel among managers, is no more. WTO Meet: resolved to meet again Road development slows down A C Muthiah – his munificent bequeaths to science Medical costs hit the roof... B H Kothari - a tribute Where a state respects its litterateurs… Gay abandon in pricing Welcome changes that testify to Jayalalithaa’s return to health A rich pool of talent not utilised…. Adapt Vajpayee dinner diplomacy PPP mode for upgrading Corporation Hospitals Delhi Chalo... No Maha Koottani in TN... Protest masters... Inflation: are we emulating Argentina and Brazil? A friendly business group Multi-faceted Venkat SoA @ 80 Roaring Ro-Ro facility China invests in India TIAM turns a full cycle Revving up the manufacturing sector IAS invades NDDB... Marketing expert Balagopal is no more More Shakthi to Das’ elbow Tribute – M V Murugappan Making ‘my Amaravati’... CII projects higher growth… EVM is tamper-proof The brown list of Venkitaramanan Kulandai was a giant No mega rail project for Tamil Nadu Rahman at CIC Mersal magnified The rise and fall of Annamalai University The rise and rise of KCP to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Scientists urged to take up farmer-oriented research Align crops to agro climate endowments… Polls and promises A think tank for Chennai More tributes to GR L&T- the specialty of special purpose vehicles Where is Rajaji? The ‘Jayanthi Tax.’ Shanti and Sadhana through Music Poor quality of university VCs Lalu’s envy, India’s pride S V Raju – a ‘good’ true liberal Tough task taking states together Bihar elections - the Rajaji formula worked The few handicaps... Demise of a media baron... Welcome GST Boy, can you beat these? TELANGANA at last…BUT Music happens Eternal support for capitalisation of PS banks Auto components surge… Insurance companies bleeding, yet no decision on increasing FDI limit! The nuclear option Nuclear power at the nucleus The why of tax incentives Secularism and anti-Hinduism Valli, they are more marginalised Cement prices continue to rise… Fortune for Indian Airlines Strengthen the base... Measuring roof tops in terms of KW/MW Return to king coal for urea... Building loyalty through the stomach Streamlining mandatory third party cover ONGC at KG Basin Airlines in India: cost and space Infrastructure funding – lessons learnt Make standards certification mandatory... Editor's Notes Revive development banks... Modi storms Silicon Valley Discoms deserve better… Delhi returns to BJP Shaming of Tamils by Tamil farmers at Delhi Why land prices zoom in TN? Kudos to NDTV... IPL type auction for VCs? Land reclamation from sea appears cheaper! The power-full Hindujas Dr C Rangarajan returns to Chennai Funding the un-funded Welcome thrust on trade in Modi’s foreign visits... There was flood of milk. Reason: no milk commissioner! Modi and the lady Telangana in top gear… Delhi is distant… Wanted: a second airport for Chennai A more liberated TN… Tatas moving out of urea production... Come elections, come advertisements... …and of a popular trade leader An informal presentation - analytical, forward locking... Tribute Not just in-laws (and outlaws); they’ve renowned academics at the helm! CIPET hqrs to stay at Guindy – for the present? Naidu’s return augurs well for Seemandhra How Air-India loses customs... S Ramanathan – a versatile musician, musicologist When the President was rendered homeless… Another Indian music maestro at the UN CSR and CMI: promise of another Srinivasan Ramanujan... The sea- saw battle continues... Fall in crude prices help in oil sector reform An inexplicable neglect Noble nonagenarians... Readers' Mail EEC at the National Media Centre PC’s preference for professionals The Swadeshi Trump Delhi is distant More Shakti to resource mobilisation... Russi Mody – a tribute Build close rapport with business leaders The ‘Ayyo-yes’ is no more Kinetic Karnataka This scant respect for Law A welcome initiative by the judiciary Preserving for the future West Bengal: mindless malignancy The Jan Dhan bonanza Breaththrough in malaria control Waning interest in public discussions… Should we change the official year? Sri Lanka votes for change Quality silica from Neyveli Robber barons everywhere Pharma – overdose of copying TN accounts for the largest recruits by the IT sector He continues the focus on social amelioration When TN politicians can emulate Kerala's Poor representation for Kerala and TN in Cabinet Shipping woes of Chennai companies Small units prefers to remain small... Put expensive assets created to use... Gas is the way forward When online building permits work…. Odisha: spectacular win by Naveen Patnaik Contrarian cousins Intellectual of rare qualities Why this malaise in medical education? Like Hinduism: many paths to reach God... Five star activism stalls development activity GNS - 100: our first subscriber Remembering Indira Sivasailam... Muffled voices for merit… TN-leverage strength of BHEL, NLC... Paytm karo... More heat than light Alexa – Talking Wikipedia Moily’s bold thrust Recognition to role of NBFCs.... Naidu will soon build a new Hyderabad Sweeter prospects for sugar All eyes on Sankara Nethralaya Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated GM Technology at last! A yen for wastage… Padma Bhushan for A Ramakrishna Quality education through the PPP mode MHC should not return to its old indisciplined ways Tribute – UCAL Selvan… Sweet news for TN sugar mills For whom the bell tolls? Whistle-Stop Tour of Raghuram Rajan L&T: focus on infrastructure and more infrastructure… Godspeed, Chief Minister JJ The Gulf aviation boom When Ratan Tata visited SRM Mu Sigma – is no more Fuel for thought A Grand Finale for SN’s MS centenary at the US… Cleaning Ganga – relocate tanneries and install electric crematoria Haul over the coal The balancing act Shale gas and its shallow future The star of Spencers is no more A Grand Finale for SN’s MS centenary at the US… Solar, solar everywhere … Engineering seats go abegging Of course, Gujarat is vibrant Cutting the nose to spite the face Computation of GDP – conundrums continue Fortune 500 review Online not in line with brick and mortar businesses... Liberal imports idling indigenous capacities Silver Years of Madras Musings Convulsions in The Hindu Focus on quality of power - its only around 170-180V IPL - no surprise this scam Welcome focus on core competence Permanent secretariat for TN GIM When nations steal growth from one another… New IT products of Ramco in the pipeline… London, London Narayan The Ports’ Pasha expands into Tamil Nadu Banning booze... No engine for this car He saved millions from starvation... Wise Presidents Tax agriculture A proud Madrasi Bihar – Nitish Kumar adopts the Lalu model Excel Generators provide the vital back-up TGS- The king storyteller Maximising the micro pricing … Lesson from Chandrababu Naidu Which side are you, Montek? Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Editor's Says Solar thermal shines… Vibrant Gujarat Tatas moving out of urea production... Don’t seem to feel the pulse… A glass full of corruption Parliament in paralysis... An enemy’s enemy is a friend Increasing non co-operation of state leaders Air Asia India will set new benchmarks for budget travel Tribute – Manikam Ramaswami Diamond jubilee of Egmore Samskrt School F C Kohli - his concerns all embracing Reliance’s TV – 18 ready to launch Tamil News Channel Limit foreign borrowings to hi-tech, export potential projects... Towards speedy justice R Sridhar steps down as CEO of Shriram Capital
Recognition to role of NBFCs....

NBFCs have not been receiving credit for the service rendered in financing lakhs of small and micro enterprises. Sustained efforts were made by Shriram Group’s R Thyagarajan supported by Akhila Srinivasan and her team in mobilising dozens of trade bodies all over the country. These include small transport operators, traders’ associations, motor parts dealers and a lot of other small business groups to demand attention to funding their requirements. These have been receiving little attention from the organised banking sector and have been largely kept out of the benefits extended through the priority lending route.         There is, therefore, understandable satisfaction over the change brought about through MUDRA Bank. Significantly, this measure would also take NBFCs out of the regulation and control of Reserve Bank of India.

This makes sense. RBI has not been able to regulate its primary function of controlling inflation effectively, formulate and implement its monetary policy and even regulate the large and growing banking system.

NBFCs are a different sector, much smaller in size related to the banks and needing different set of regulatory norms. Over the last 15 years these have been battered by ever-changing norms and increased restrictions in raising resources. At this rate, Thyagarajan predicts the total extinction of the sector over the next five years.

Thus, the release of NBFCs from the control of RBI and creation of MUDRA Bank as a specialised statutory institution is of special value to the NBFC sector that has been making a rich contribution to nurturing lakhs of new entrepreneurs in small businesses.


Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236