Reduction in transactions of cash in microcredit to enhance transparency: Governor, Abdur Rouf Talukder, governor of the Bangladesh Bank, stated today that less cash transactions in microcredit would increase transparency in the industry nationwide. At an event in the capital today, the governor of the central bank spoke about the Microcredit Regulatory Authority’s (MRA) e-introduction. service Although there are many NGOs operating in the nation to provide services, according to Rouf, they charge high fees while the poorer communities also pay high interest rates on their microcredit. “Cash transactions in microcredit must be decreased.”
Reduction in transactions of cash in microcredit to enhance transparency: Governor
He urged everyone who was involved to leave the culture of excessive profit and claimed there was no other way to lower the interest rate. There are currently 881 microcredit organizations authorized to operate throughout the nation by the MRA. Out of that, about 747 operate all over the country through about 22,000 branches. The NGOs have a loan realization percentage of greater than 98 percent.
More than 3.52 crore families, or more than 75% of the country’s population, are covered by microcredit operations, according to official data. Since families typically have four members, this translates to about 14 crore people.
According to information from the Credit and Development Forum (CDF), microcredit organizations provide about 73 percent of the financing for rural areas. About 40% of the total microcredit amounts disbursed are used for agriculture, and about 31% are used for small businesses. Microcredit accounts for 14.37 percent of GDP.
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