Sa-Dhan to Apply for Self Regulatory Organization (SRO) Status Following RBI Announcement

NEW DELHI, November 28, 2013 /PRNewswire/ --

Sa-Dhan, the Association of Community Development Financial Institutions, welcomes the move by the Reserve Bank of India (RBI) to accord recognition to industry associations as Self-Regulatory Organizations (SRO) of NBFC-MFIs. Over the years, Sa-Dhan has been shaping itself to be the SRO for the sector and will surely be applying for the SRO status as we feel that it is an effective strategy that will make the microfinance market stronger through delegated supervision and robust client protection measures.

Mr Mathew Titus, Executive Director, Sa-Dhan said, "Sa-Dhan has been working tirelessly with its members for almost a decade to develop tools, mechanisms, and channels to address the concerns with regard to growth, competition, over indebtedness and alleged coercive practices. The code of conduct covers all aspects of RBI regulation, and Self-regulation principles including transparency, client education, integrity and ethical behavior, client protection, feedback and grievance redressal, data sharing, governance and recruitment. The code was originally unveiled by Sa-Dhan in 2006 and further improved in 2010 as the industry code of conduct."

"Additionally, Sa-Dhan has also set up financial standards for ensuring transparency and financial disclosure. The Bharat Microfinance Report, has been collecting and publishing financial and non-financial data from member and non-member MFIs since 2004," added Mr Titus.

Extensive number of code of conduct assessments have been undertaken by Sa-Dhan, trainings and capacity building workshops have been organized with microfinance practitioners to disseminate the values and components of the Code of Conduct and ensure its adherence in letter and spirit. Lately, Sa-Dhan has introduced suspension and termination clause for membership in the wake of non-compliance or gross violation of code of conduct.

Website: http://www.sa-dhan.net/

Primary Media Contact: Aseem Das, [email protected], 91-9311965186