Micro finance institutions (MFI) in India need to be given special micro credit banking licence enabling them to raise deposits for the lending requirements, Nobel laureate and father of micro credit concept Muhammad Yunus said today.
Yunus, an economist and founder of the Grameen Bank in Bangladesh, while appreciating the work done by MFIs in India cautioned them from tapping capital markets for funds.
"MFI should be allowed to take deposits. May be we need a little change in the legal system. So that MFIs can become micro credit banks and can take deposits and lend money, they don't have to go to the market.
"MFIs could be given special micro credit banking license so that you would come under regulations," said Yunus.
Published 11 June 2014, 18:22 IST